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We’ll be real: the idea of owning a home in Melbourne is a wildly unachievable pipe dream for a lot of us. And a house and backyard for less than $500,000 sounds like a distant dream too, but it’s still possible in parts of regional Victoria. New data from realestate.com.au has identified 193 Australian suburbs with median house prices of $500,000 or less in September 2026, including 41 in Victoria.
Most of the state's affordable locations are scattered across the North West, Latrobe-Gippsland, Warrnambool and South West, and Shepparton regions. While a regional move won't suit everyone, these towns offer an alternative for buyers willing to swap inner-city convenience for a different pace of life.
One standout is Morwell, in the Latrobe-Gippsland region, where the median house price climbed 20.2 per cent over the year to September, reaching $425,000. Around 550 homes changed hands during the same period, according to realestate.com.au.
Local agent Jesse Watson, of First National Real Estate Central KW-Morwell, told the publication that commercial activity, industrial jobs and developments in the area were helping attract buyers. The town also sits between Traralgon and Warragul, with Monash University's Churchill campus nearby.
Other Victorian towns recording median house prices below $500,000 include Horsham ($471,500), Ararat ($445,600), Hamilton ($443,100), Moe ($450,000), Stawell ($415,000) and Maryborough ($440,000).
If you’re dreaming of a regional life by the sea, Portland – on the state's south-west coast – has a median house price of $492,500. Further inland, Camperdown comes in at $500,000, and Loch Sport, in Gippsland, sits at $350,000.
There are also more affordable options in smaller regional centres, including Nhill ($278,500), Warracknabeal ($299,000), Donald ($310,000) and Kerang ($345,000).
Of course, a lower property price doesn't automatically mean a cheaper lifestyle. Prospective buyers will still need to think about employment opportunities, transport options, healthcare and other essential services before packing up and moving. But with Australia's median house price sitting at $974,000, these Victorian towns are looking pretty appealing.
You can check out the full list (with options across the country) over here.
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