Guide
Best suburbs to invest in Melbourne: 5 affordable picks for 2026
Five suburbs in Melbourne where a typical house costs less than the city median of $915,119, picked on price growth, rent growth and rental yield. A shortlist to research, not a list to buy from.
By Mossy Taheri, licensed buyer’s agent · Updated
The short answer
Five affordable suburbs to research in Melbourne: Junction Village, Wollert, Meadow Heights, Pakenham, Dallas. Each has a typical house price under $915,119. Junction Village has had the strongest growth, about 7.6% a year over five years, and Junction Village has the highest gross yield, about 4.5%.
The five suburbs at a glance
Houses, all bedroom sizes, to 31 October 2026. Growth figures are average yearly changes.
| Suburb | Typical house price | Weekly rent | Gross yield | Price growth (5 yrs, a year) | Rent growth (3 yrs, a year) |
|---|---|---|---|---|---|
| Junction Village Casey, south-east Melbourne | $691,433 | $600 | 4.5% | 7.6% | 5.6% |
| Wollert Whittlesea, northern Melbourne | $710,377 | $535 | 3.9% | 7.4% | 5.2% |
| Meadow Heights Hume, northern Melbourne | $718,372 | $519 | 3.8% | 4.0% | 7.3% |
| Pakenham Cardinia, south-east Melbourne | $758,127 | $543 | 3.7% | 4.0% | 7.2% |
| Dallas Hume, northern Melbourne | $625,670 | $527 | 4.4% | 3.6% | 8.4% |
Each suburb in brief
1. Junction Village, Casey, south-east Melbourne
A small suburb beside Cranbourne with one of the higher house yields in Melbourne. Being small, its figures can move more from year to year.
Typical house price $691,433, rent about $600 a week (a gross yield of 4.5%). Prices grew about 7.6% a year over five years and 5.6% a year over ten; rents grew about 5.6% a year over three years.
2. Wollert, Whittlesea, northern Melbourne
A growth-corridor suburb of mostly new estates. Land supply keeps coming, which can cap price growth, so buy for the long term and check what's being built nearby.
Typical house price $710,377, rent about $535 a week (a gross yield of 3.9%). Prices grew about 7.4% a year over five years and 9.0% a year over ten; rents grew about 5.2% a year over three years.
3. Meadow Heights, Hume, northern Melbourne
An established suburb from the 1980s and 1990s near Craigieburn and Broadmeadows, with strong rent growth over three years.
Typical house price $718,372, rent about $519 a week (a gross yield of 3.8%). Prices grew about 4.0% a year over five years and 5.7% a year over ten; rents grew about 7.3% a year over three years.
4. Pakenham, Cardinia, south-east Melbourne
A large growth-area town at the end of the Pakenham train line, with its own shops, schools and jobs. Rents have grown about 7% a year over three years.
Typical house price $758,127, rent about $543 a week (a gross yield of 3.7%). Prices grew about 4.0% a year over five years and 6.0% a year over ten; rents grew about 7.2% a year over three years.
5. Dallas, Hume, northern Melbourne
The lowest-priced suburb on this list, near Broadmeadows. Older homes and some of the strongest rent growth in Melbourne, but price growth has been modest.
Typical house price $625,670, rent about $527 a week (a gross yield of 4.4%). Prices grew about 3.6% a year over five years and 5.3% a year over ten; rents grew about 8.4% a year over three years.
How we chose them
- Affordable: a typical house price below the median house value for Melbourne, $915,119 (Cotality, median house values, September 2026).
- Reliable: only suburbs with enough sales and rentals to give dependable figures.
- Ranked on four measures: price growth over five years, rent growth over three years, gross rental yield and, at half weight, price growth over ten years. 15 suburbs passed the first filters.
- Left out: island suburbs, very small or outlying towns with few buyers, suburbs with well-known flood exposure, and any third suburb from the same town (such as a third Elizabeth suburb in Adelaide), so the list isn't five versions of one place.
This is a shortlist for research, not a recommendation to buy in any of these suburbs. Past growth doesn’t predict future growth, and figures for a whole suburb hide big differences between streets and properties. General information only, not personal financial advice.
Before you buy in any of them
- Check the council's flood, bushfire and planning overlays for the street, not just the suburb.
- Look at the vacancy rate and how many rentals are listed, so you know tenants are there.
- Find out what's being built nearby: new estates and apartment blocks add supply and can slow growth.
- Get a building and pest inspection; many affordable suburbs have older homes.
- Run the numbers on the property itself, including interest, rates, insurance and management.
Our rental yield calculator and cash flow calculator help with the last step. For buying costs, see stamp duty.
- Melbourne market guide 2026
- Buyers agent Melbourne
- Best suburbs to invest in regional Victoria
- Best suburbs to invest in Australia: every list
- All locations
Cite this page: Rising Returns, “Best Suburbs to Invest in Melbourne 2026: 5 Affordable Picks”, data to 31 October 2026, https://risingreturns.com.au/best-suburbs-to-invest-melbourne/
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Book a free discovery callInvesting in Melbourne: common questions
What are the best affordable suburbs to invest in Melbourne?
On our analysis of suburb data to 31 October 2026, our five picks are Junction Village, Wollert, Meadow Heights, Pakenham and Dallas. Each has a typical house price below $915,119, enough sales to give reliable figures, and a strong mix of price growth, rent growth and rental yield. They are a starting point for research, not a recommendation to buy in any of them.
What does affordable mean on this list?
A typical house price below Cotality's median house value for Melbourne ($915,119). It is relative: an affordable suburb in Sydney still costs more than most regional towns.
Does past growth mean these suburbs will keep growing?
No. Growth figures show what has happened, not what will. Strong recent growth can mean a suburb has already had its run. Look at supply, jobs, infrastructure and vacancy rates as well, and check the individual property and street.
Why does the list only cover houses?
Houses usually hold more land value, which tends to drive long-term growth, and house data is more consistent between suburbs. Units and townhouses can suit some budgets and goals, but they need a separate comparison.
General information only. It doesn’t consider your personal circumstances and isn’t financial, tax, credit or legal advice. Speak to a licensed professional before you act.