Cheapest Suburbs in NSW: 10 Budget-Friendly Places to Call Home in 2025

Finding the cheapest suburbs in NSW feels more important than ever as rising interest rates, tighter lending, and soaring city prices push buyers to the edge. New South Wales offers a mix of coastal charm, regional peace, and vibrant town life—plus plenty of suburbs where affordability meets lifestyle. 

With the property market presenting real challenges in 2025, more Aussies are rethinking where they can actually afford to live. 

This guide is for:

• First-home buyers trying to break into the market
• Downsizers looking for low-maintenance, low-cost living
• Investors chasing better rental yields and growth
• Remote workers seeking lifestyle and affordability

Now, let’s explore the top suburbs in New South Wales, known for affordable housing. 

If you’re looking for tailored home loan options, chat with our expert NSW mortgage brokers today. 

Top 10 Cheapest NSW Suburbs

Here's our pick of the top 10 cheapest New South Wales suburbs offering lifestyle, space, and potential, all without the hefty price tag.

1. Broken Hill – The Most Affordable Regional City in NSW

A historic mining town turned artsy regional centre, Broken Hill combines affordability with character. Its stunning heritage buildings and growing creative scene attract retirees, remote workers, and lifestyle seekers. Despite its remote location, it offers key amenities including schools, a hospital, and public transport.

• Median House Price: $160,000
  
  
• Average Rental Price: $280/week
  
  

2. Cobar – Affordable Outback Living in Central NSW

Cobar is a mining town where housing remains accessible and the community is close-knit. The town has a strong employment base in minerals and agriculture, and its wide streets and older homes offer generous land sizes. Perfect for investors chasing high yields.

• Median House Price: $215,000
  
  
• Average Rental Price: $310/week
  
  

3. Wellington – Budget-Friendly Homes with a Country Feel

Located near Dubbo, Wellington has a mix of colonial history and quiet suburban life. It’s surrounded by scenic beauty, and the Wellington Caves are a key landmark. Buyers benefit from infrastructure spillover from nearby Dubbo.

• Median House Price: $260,000
  
  
• Average Rental Price: $320/week
  
  

4. Cootamundra – Small-Town Charm Meets Low House Prices

Known as the birthplace of cricket legend Sir Donald Bradman, Cootamundra blends country hospitality with affordability. Local attractions like Jubilee Park and the Cootamundra Arts Centre enhance its lifestyle appeal.

• Median House Price: $295,000
  
  
• Average Rental Price: $300/week
  
  

5. Inverell – A Northern Tablelands Gem with Cheap Housing

Set in a valley along the Macintyre River, Inverell offers picturesque landscapes and affordable housing. The town’s services include hospitals, schools, and a robust retail sector, making it ideal for young families.

• Median House Price: $330,000
  
  
• Average Rental Price: $340/week
  
  

Need help comparing home loans for regional NSW? Speak with our trusted NSW mortgage brokers for personalised support and smarter lending options.

6. Leeton – Agriculture, Affordability, and Quiet Living

Leeton’s economy is built on irrigation farming and food production, giving it a stable jobs base. Its peaceful streets, local markets, and affordability make it a great spot for downsizers and first-time buyers.

• Median House Price: $345,000
  
  
• Average Rental Price: $330/week
  
  

7. Narrabri – Low-Cost Housing in a Growing Regional Hub

Narrabri is seeing infrastructure investment, particularly around energy and agriculture. With good schools, job opportunities, and growing amenities, it's a rising star among affordable regional hubs.

• Median House Price: $365,000
  
  
• Average Rental Price: $350/week
  
  

8. Young – Cherry Capital with Attractive House Prices

Famous for its cherry farms and festivals, Young has a growing economy, family-friendly atmosphere, and a calm pace of life. Recent infrastructure projects have made it more attractive to buyers from metro areas.

• Median House Price: $375,000
  
  
• Average Rental Price: $340/week
  
  

9. Hillvue (Tamworth) – Cheap Suburban Living in a Music Capital

As a suburb of Tamworth, Hillvue gives you access to a larger city’s amenities, including great schools and a major hospital. It's known for spacious homes, local parks, and affordability relative to Tamworth's centre.

• Median House Price: $395,000
  
  
• Average Rental Price: $380/week
  
  

10. Mount Austin (Wagga Wagga) – Budget Housing Near Urban Amenities

Mount Austin offers the best of Wagga Wagga’s regional city life with budget-friendly property. It’s close to schools, shopping centres, and Wagga Base Hospital. Ideal for families or retirees wanting urban perks without the price tag.

• Median House Price: $420,000
  
  
• Average Rental Price: $390/week

Sources: CoreLogic, Realestate.com.au, Domain. Take note that property values tend to fluctuate over time, so it’s a good idea to consult with a real estate agent for the latest market prices.

What to Know Before Buying in a Cheap Suburb

There’s a lot more to affordable suburbs than just the price tag. Before diving into a home purchase in one of New South Wales's budget-friendly options, it's worth weighing the upsides and trade-offs.

These affordable properties often appeal to buyers chasing a better quality of life, but it’s important to consider your financial situation and long-term goals.

Pros of Buying in an Affordable Suburb

• Lower housing prices make it easier to enter the market, especially if you're struggling with a deposit.

• These suburbs often feature larger blocks, green spaces, and access to outdoor activities not found near the central business district.

• A strong sense of community and a slower pace of life are typical, which many buyers find refreshing.

• You'll find a wide range of affordable housing options, including affordable houses, rental properties, and even the cheapest houses under $300k.

• Essential amenities like schools, clinics, and a railway station are often still available — just without the inflated costs of a city centre postcode.

• Lower cost of living means more breathing room in your budget month to month.

• Some regions show steady demand, as remote work and lifestyle shifts push people out of expensive suburbs and into more affordable options.

• According to the latest House Price Report, some of these suburbs for houses are outperforming metro markets in rental yield.

Cons to Be Aware Of

• Distance from a city centre or central business district can mean longer commutes and less access to top-tier jobs.

• Rental market may be smaller, which could limit your tenant pool if buying an investment.

• Rents for houses and overall property prices may not rise as quickly, affecting capital growth.

• Fewer entertainment, dining, and cultural spots compared to popular choice metro suburbs.

• Some areas have limited public transport options, though a local railway station can offset this.

• In some towns, crime rates may be slightly higher — always check local council data or talk to locals.

• Not all locations have high-performing schools or key amenities like major hospitals.

Buying in one of NSW’s attractive options for affordability could mean finally achieving home ownership or smart investing. But like any decision, it should strike a balance between affordability and your lifestyle needs.

Future Growth Potential: Should You Invest in These Suburbs?

For many, choosing a cheaper suburb isn’t just about affordability—it’s a long-term investment property decision. And with the growing demand for property in regional areas, certain affordable towns are now showing real signs of growth.

These suburbs aren’t just offering a mix of affordability and lifestyle perks. They’re attracting a new wave of property investors, remote workers, and families looking for a better deal outside capital cities.

Signs of Future Capital Growth

Some of the top 10 cheapest suburbs in NSW are already seeing strong sales activity and low vacancy rates, especially in areas with improving infrastructure or new industries. 

Places like Narrabri and Young have seen significant regional development, while suburbs like Hillvue and Mount Austin offer a compelling combination of affordability and livability.

The median property price in many of these towns is still below $400,000, which is considerably lower than any Sydney week for houses data, making them prime territory for entry-level investors.

Areas that are located near train stations, schools, and town centres tend to show more consistent growth. Properties on leafy streets, with proximity to national parks, and in close-knit communities, tend to attract both renters and owner-occupiers alike, adding to their future value.

Rental Yield & Demand

Several suburbs, like Cobar and Broken Hill, currently deliver yields of 6–8%, far above the NSW metro average. With increasing rental demand, particularly in towns with boarding houses and growing job markets, these areas can generate solid income for the savvy property investor.

Keep in mind: homes near access to schools, healthcare, and train stations usually have stronger appeal. Locations offering a range of options—from townhouses to detached homes—also fare better in terms of long-term tenancy.

If you’re aiming for cost-effective options, these suburbs hit the mark without compromising on community atmosphere or lifestyle.

Ready to find your perfect place in NSW without breaking the bank? Chat with expert NSW mortgage brokers to explore smart home loan options that match your goals and budget.

Frequently Asked Questions (FAQs)

What are the most undervalued suburbs in Sydney?

Suburbs like Wiley Park, Guildford, and Canley Vale are considered undervalued, offering a blend of affordability and access to regular bus services, medical facilities, and community living. These areas also have a solid five-year growth rate and are a smart choice for property investors chasing long-term returns.

Where is the cheapest but nicest place to live in Australia?

Towns like Broken Hill and Leeton in NSW are among the cheapest yet most livable, combining affordable price points with community spirit, nature lovers' trails, and numerous parks. They also offer access to healthcare facilities, educational institutions, and a multicultural community, all at a fraction of capital city prices.

Where are house prices falling in NSW?

Some outer suburbs and regional towns impacted by high interest rates and reduced buyer activity are seeing a dip in house price medians, according to the Domain House Price Report. 

However, this presents a unique investment opportunity for those seeking a 3-bedroom house at a more cost-effective living price point.

Where is the cheapest place to buy property right now?

As of 2025, Broken Hill still leads the pack with a median rent and average price far below the state average, making it a compelling option for budget buyers. It also offers traditional houses near major roads, community facilities, and recreational facilities, adding lifestyle value without the hidden costs of bigger cities.

Where is the cheapest place to live in NSW?

The cheapest places to live remain regional hubs like Cobar, Wellington, and Inverell, which offer affordable living, good employment opportunities, and a real balance of affordability and lifestyle. 

These towns often feature regular train services, cultural diversity, and a strong community atmosphere, making them an ideal choice for families or first-home buyers.

What are the available home loans for homebuyers in New South Wales?

Homebuyers in NSW can explore first-home buyer loans such as fixed-rate, variable-rate loans, First Home Owner Grant, and comparison rate-based offers through lenders with competitive rates. 

Mortgage brokers can also assist with calculating monthly repayments, assessing house deposit needs, and tailoring options for one-bedroom apartments, 2-bedroom units, or larger suburb for houses purchases.

Wrapping It Up

Finding an affordable place to call home in 2025 doesn’t mean you have to give up on lifestyle, space, or community. Whether you’re buying your first property, downsizing, or investing, these cheapest suburbs in NSW offer plenty of smart options with real potential. 

If you're unsure where to start, our trusted NSW mortgage brokers based in Newcastle are here to help. 

At Mortgage Brokers Newcastle, we offer free consultation and can guide you through the best home loan options that suit your needs and budget. Give us a call at (02) 4920 6468 or visit our website today. Let’s make your property goals happen!