November 4, 2025
Cheaper or just less insane?
Once Australia's second priciest city, Melbourne has become more affordable
Melbourne’s ‘affordable’ era: first‑home buyers cheer, landlords rage
TLDR: Melbourne’s median house price is down about $10k from its 2021 peak as new builds and investor taxes reshape the market. Comments clash: first-home buyers applaud, landlords warn of rental pain, and many credit remote work—asking if “affordable” is real when the median is still $1.083m.
Melbourne just slipped from “second priciest” to “kind‑of affordable,” and the comments came in blazing. After peaking above $1m in 2021, the city’s median house price is now about $10k lower, and the community split into two camps: first‑home buyers cheering and landlords doom‑posting. Returnees like empressplay say the west and satellite towns are exploding with new builds, plus remote work is pushing people farther out. Others insist the real plot twist is Victoria’s taxes on investors, Airbnbs, and empty homes.
Investors warn this is a “rental crisis starter pack,” pointing to fewer landlords and a dip in rental listings. But data‑nerds clap back: rents in Melbourne have risen slower than other capitals, and economists like Saul Eslake do victory laps, arguing fewer tax breaks for investors isn’t a tragedy. Geeks cite Domain and ABS, while supply stans quote the Grattan Institute: build more, keep prices tame. Meme of the day: “Goodbye Airbnbs, hello actual neighbors.” The spiciest fight? Is affordability “real” when the median is still $1.083m. Brisbane surged $400k, and Melbourne’s only $40k above Adelaide—jokes and side‑eye. Treasurer vows more building; comments scream “faster.”
Key Points
- •Melbourne’s median house price remains $10,000 below its 2021 peak, according to Domain.
- •Victoria’s first home buyers now account for nearly three in 10 home loans, while investor activity has been slower to rise.
- •The state introduced additional investor land tax (~$1,300/year on a $650,000 property), an Airbnb levy, and expanded taxes on vacant properties and land.
- •Landlord exits reduced rental stock in Victoria from 678,000 (Sep 2023) to 655,000 (Mar), yet Melbourne’s rents rose 33% since 2021—slower than other major capitals.
- •Strong supply growth—at least 55,000 homes built annually for a decade—has supported affordability, with plans to further expand housing via planning reforms.