The great Australian dream has long since been to own a home. But for decades, many people have found it difficult to achieve this goal in Sydney.
Even today, with the median house price being $1.65 million (according to Domain.com.au), the rising cost of living and the increasingly tighter lending rules that are being enforced by financial institutions, many have no choice but to rent.
However, for those who are in a fortunate enough position where they have enough savings to make a 20% deposit and are approved for a mortgage, there is some good news. There are still entry-level suburbs across Sydney that command reasonable prices, decent amenities, and offer good long-term equity potential.
Regardless of whether you’re after a unit close to public transport or a house in a family-friendly neighbourhood, this guide will help you find Sydney’s cheapest suburbs for first-home buyers.
Get Expert Help
Before exploring Sydney’s cheapest suburbs, it’s worth speaking to a broker who knows the market well.
There are a few good ones around, but AFMS Group mortgage brokers in Sydney are among the best.
The benefit of using a service like theirs is that it can help you understand your borrowing power. They can also advise on NSW first-home buyer grants, show you what loan options are available to first-home buyers, and advise you on which lenders are offering the most competitive rates.
What Makes a Suburb “Affordable”?
The words “affordable” and “Sydney” don’t always appear in the same sentence. So, it is important to understand that when we talk about more affordable properties in the Emerald City, it is meant to be taken in relative terms.
For instance, what’s cheap compared to inner-city Paddington or Bondi might still be out of reach for many buyers. However, for the purpose of this guide, we’ve looked at suburbs with:
- A median house or unit price under that is lower than most other suburbs
- Good public transport links or proximity to key employment areas
- A record of steady growth or recent (or planned) revitalisation
- Access to schools, shops, and lifestyle amenities
With that in mind, here are five of the most affordable suburbs for housing Sydney has to offer in 2025.
1. Wiley Park
Located just 25km south-west of the CBD, Wiley Park is gaining popularity among first-home buyers. It’s part of the Canterbury-Bankstown area and offers excellent access to train lines, local parks, and multicultural dining spots.
Given its central location and generally cheaper house prices, Wiley Park is one of the best suburbs to buy in Sydney for those who want value without straying too far from the city. Units here are well below Sydney’s median, and the suburb is undergoing upgrades that could significantly boost its value in the future.
2. St Marys
If you’re after a house instead of a unit, St Marys could be your best bet. Situated in Western Sydney, it’s part of the Penrith LGA and is starting to gain more attention thanks to the upcoming Western Sydney Airport development.
This suburb offers a good mix of older homes and new builds. It also has decent parks and schools, and provides good access to the Great Western Highway and M4 motorway.
Moreover, as the area develops, property prices are expected to grow. So, it offers excellent potential as an entry-level suburb in Sydney that first-home buyers should consider.
3. Liverpool
Liverpool continues to be a top pick for those looking to buy a home in Sydney without breaking the bank. With a thriving multicultural community, major hospitals, and a busy shopping precinct, it ticks a lot of boxes for families and young professionals.
What’s more, the suburb is part of the Greater Western Sydney growth corridor. That means more jobs, infrastructure, and housing projects on the horizon.
For this reason, it might be an excellent option for buyers who want to live in an up-and-coming Sydney suburb with long-term potential.
4. Campbelltown
Campbelltown is further out of the city. But if you don’t mind a commute, it is not a bad option. The area is well-served by trains and buses, with links to the Sydney CBD and Liverpool.
What makes this such an attractive option is that it’s one of the last affordable hubs where first-home buyers can still find houses under the $750,000 mark. Additionally, there are schools, shopping centres, parks, and even a hospital here, which provides you with all the amenities you could want in a regional centre.
5. Bankstown
Bankstown has long been seen as a working-class suburb. However, in recent times, it’s quickly started to evolve into something more upscale.
Redevelopment around the CBD, new apartment blocks, and strong demand have put Bankstown well and truly on the radar of first-home buyers in Sydney.
Situated only 20km from the CBD, the area offers great train connectivity, access to major roads, multi-cultural eateries and plenty of retail outlets. For buyers who want a convenient location where they can enjoy a good lifestyle, Bankstown provides a fabulous alternative to inner-city living.
First-Home Buyer Grants and Support
If you do so, a property you like, don’t forget to explore the NSW First Home Buyer Assistance Scheme when budgeting for it.
Depending on your situation, you may be eligible for:
- Stamp duty exemptions or discounts
- First Home Owner Grant (New Homes)
- Shared equity schemes (if available)
- Help to Buy and low-deposit loan options
It is worth talking to a mortgage broker or financial advisor, as they can guide you through the nuances and finer points of these schemes to determine whether you qualify for them.
Once you have bought your first home, here are some things to remember.