Renting vs Buying: What Makes Sense for Millennials?

For many millennials in Australia, the decision between renting and buying a home is one of the biggest financial choices they will make. With rising property prices, stagnant wages, and flexible lifestyles, is buying still the dream? Or is renting a smarter move in 2025?

Current Property Market Overview

In 2025, Australian capital cities continue to see high median house prices. Sydney and Melbourne are especially expensive, while Brisbane, Adelaide, and Perth offer slightly more affordable options. Interest rates remain steady but are still higher than pre-pandemic levels.

Advantages of Renting

• Flexibility: Easier to move for work or lifestyle changes
• No Major Maintenance Costs: Repairs are typically landlord's responsibility
• Lower Upfront Costs: Bond and rent are more manageable than a 20% home deposit

Advantages of Buying

• Equity Growth: You’re building ownership with every repayment
• Stability: No landlord can ask you to leave or increase rent
• Homeowner Incentives: First Home Owner Grant (FHOG), stamp duty concessions

Financial Considerations

• Renting: Easier cash flow, but no asset growth
• Buying: High upfront cost, but long-term investment
• Hidden Costs of Buying: Stamp duty, legal fees, inspections, ongoing maintenance

Rent vs Buy: A Quick Example

	Renting	Buying
Monthly Cost	$2,000 rent	$2,400 mortgage
Upfront Cost	$4,000 bond	$120,000 deposit
Ownership	No	Yes

So, Which One’s Right for You?

Ask yourself:

• Do you plan to live in the same area for the next 5+ years?
• Do you have a stable income and emergency savings?
• Are you ready for long-term financial commitment and responsibility?

Conclusion

There’s no one-size-fits-all answer. Renting can be a smart short-term option, while buying is ideal for those ready for long-term commitment. Weigh your financial health, life goals, and market conditions before making your move.

Next up: How to Budget on a $60K Salary in Australia