Is Renting Actually Cheaper Than Buying Right Now?

According to recent data, the median house price in Ballarat has surpassed $510,000, prompting many to consider whether renting is a more affordable option.

This shift in thinking is particularly relevant now, as Melbourne overflow buyers and retirees flock to Ballarat, driving up property prices and rents in sought-after suburbs like Lake Wendouree and Alfredton. The appeal of heritage housing in areas like Lydiard Street and Sturt Street is also a major drawcard, but comes with a hefty price tag.

In Ballarat, organisations like the Ballarat Property Association and the City of Ballarat are working to address affordability concerns through initiatives like the Ballarat Housing Strategy and the Affordable Housing Program. Meanwhile, local real estate agents are reporting increased demand for rentals in areas like Sebastopol and Delacombe, with properties on streets like Smythes Creek and Dyson Crescent being snapped up quickly.

A Closer Look at the Numbers

A recent analysis of data from the Real Estate Institute of Victoria found that the average monthly mortgage repayment on a $510,000 house in Ballarat is around $2,300, assuming a 20% deposit and a 30-year loan term. In contrast, the average monthly rent for a three-bedroom house in Ballarat is around $1,800, according to data from the Australian Bureau of Statistics. This represents a saving of $500 per month for renters, or around $6,000 per year. As of June 2026, the rent-to-buy differential is becoming increasingly pronounced, with some renters paying up to 30% less than buyers in equivalent properties.

So what does this mean for those considering their options in the Ballarat property market? For many, renting may indeed be the more affordable choice, at least in the short term. However, buyers who can secure a competitive interest rate and are willing to take a long-term view may still find that owning a property is the better value proposition. As the market continues to evolve, it's essential for both buyers and renters to do their research and consider factors like lifestyle, budget, and personal preferences before making a decision. The Ballarat Property Expo, scheduled for August 2026 at the Ballarat Exhibition Centre, will provide a valuable opportunity for prospective buyers and renters to explore their options and get expert advice from local real estate professionals.