Is renting actually cheaper than buying right now?

Wollongong buyers now face median weekly mortgage repayments of $1,180 on a typical $920,000 property, while equivalent rentals average $680 a week, according to July 2026 figures from the NSW Valuer General.

The gap has widened since the Reserve Bank held rates at 4.35 per cent through the first half of 2026, lifting borrowing costs for new purchasers while rental vacancy rates in the Illawarra remained above 2.1 per cent.

Local price and rent gaps

Properties along Crown Street in the Wollongong CBD renewal zone show the clearest split, with two-bedroom units selling near $785,000 yet leasing for $520 a week. In Fairy Meadow, three-bedroom houses listed at $1.05 million command rents of $750 a week, still below the $1,320 monthly repayment a buyer would face after a 20 per cent deposit.

Thirroul coastal stock adds further pressure, where premium four-bedroom homes exceed $1.4 million and attract weekly rents around $950, a figure that still undercuts the interest-only payments required at current rates.

Wollongong City Council’s housing affordability register recorded 312 first-home buyer applications in the June quarter, down 18 per cent from the same period last year, while the state government’s shared equity scheme has approved only 47 local participants since its January expansion.

Next steps for households

Prospective buyers should compare total ownership costs, including council rates averaging $2,800 a year on Wollongong median homes and strata fees that now exceed $4,500 annually in newer CBD apartments. Renters weighing a purchase can run the numbers through the Illawarra Credit Union’s free mortgage calculator or attend the next open session at the Wollongong Library on 22 July.

Those already holding deposits may benefit from waiting until the next rate decision in August, when analysts expect a possible 0.25 percentage point cut that would reduce repayments on a $736,000 loan by roughly $120 a month.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.