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Being the second option may not sound desirable, but it can save homeowners 25% to 30% - in the real estate market that is.
Bridesmaid suburbs, also sometimes referred to as "dupe suburbs", are residential areas nearby highly-sought-after neighbourhoods. Because of their close proximity to upmarket locales, they often come with a similar lifestyle and many of the amenities, including shopping areas, access to work, parks and transport — but without the higher purchase price.
"Certain suburbs are held in higher esteem. But these surrounding suburbs are a five minute drive away and they offer a lot of the same things," said Nathan Smith (pictured), general manager at Birdie Wealth, a mortgage brokerage firm based in Miranda, New South Wales.
Some examples include Sydney's Inner West neighbourhood of Ashfield, which Smith said is a 20-minute drive to Sydney's CBD. Or, down the south coast in a place like Cronulla, where home prices can be as much as a third of the price of Sydney's posh eastern suburbs. It could also be something as simple as trading up the tiny neighbourhood of Sydney's Rose Bay for something north of the Harbour Bridge, which Smith estimates is about 25% cheaper but still within commuting distance.
"We try to find homes that are in the clients’ best interest, homes that they might not have thought were suitable for them. And sometimes there's better value in neighbouring suburbs," Smith said.
Location is everything, at least when choosing a home. But Smith is thinking long term — something that's easy to overlook when a buyer falls in love with a potential new home in a price range that is out of their budget. In addition, what might be suitable for an individual or couple now might not be in five to 10 years with a growing family.
On top of the initial discount that comes from buying a bigger home in a slightly more affordable suburb, homeowners could save in sales costs and other fees by not having to move again or renovate in a few years’ time, Smith said.
"The last thing we want to do is put people in an uncomfortable position where they don't have enough cash," he said.
This can be especially advantageous in a city like Sydney where the median home price in December 2024 was $1,196,809, according to CoreLogic data, representing a 3.3% increase, year-over-year. While no other major metropolitan area in Australia had median home prices north of $1 million, Brisbane came in second at $886,540, followed by $851,731 in Canberra.
Aside from high home prices and a rising cost-of-living that continues to plague the entire nation, there's also the issue of limited supply and demand.
Andrew Rennie, a Melbourne-based mortgage broker at Helping Hands Finance, said the housing shortage had led to clients "sitting on the books longer."
"People are struggling to find places; their preapprovals have to be extended," Rennie said. The broker said he's worked with clients for as long as 14 months, trying to help them find the best possible match. Historically, the timeframe was closer to three to four months, he said. As a result, people are broadening their horizons.
"The more time it takes to find a place, the more likely they are to look at neighbouring suburbs," Rennie said. "Sometimes it's not necessarily because they're priced out, but because there's more stock in other places. I might say to my clients, 'have you considered elsewhere? You might get more bang for your buck in other neighbourhoods'. But ultimately, where someone lives is a very personal thing."
While no place is perfect, Smith said there's a number of ways to go about finding these bridesmaids, or alternative options. Knowing the surrounding areas is the first step. But there are also a number of online tools, such as realestate.com.au, and PropTrack, to track house prices in their desired locations. Filters can then be used to compare prices to similar home sizes and accommodation in surrounding areas. This could result in the choice between a newer, more modern building with added amenities, versus living in a storied neighbourhood with a more prestigious zip code.
"It's more about making them aware that they have these options," Smith said.
Alma Čustović, Melbourne-based finance broker at Loan Link, has also noticed in the last few years that clients are waiting longer to buy, especially with interest rates higher for longer. Some have decided to settle for a home a few zip codes away, while others are picking up and moving states — sometimes as far away as Queensland — to find more affordable options.
Establishing relationships with clients, and even working with buyer agents, has helped her navigate the challenges of home sales in other parts of the country.
Ultimately, she said, it's a mix of strategy and good fortune that determines much of the outcome.
"You never really know what will happen to an area," Čustović said. "Sometimes it's just luck. If you're looking for a quick flip, then maybe another neighbourhood isn't for you. But if you're playing the long game, then you never really lose with buying property."
But finding bridesmaid options doesn't just benefit the homebuyer. Brokers gain business too. In addition to the initial sale, the broker-client relationship can continue and often creates new incentives for homeowners to stay in touch.
"There are other opportunities where we can work together," Smith said. "We can help them refinance, renovate."
Rennie added that patience is also helpful. So is broadening the pool of potential clients.
"A lot of people don't want to work with first time homebuyers," he said. "But it's about being with the clients on the whole journey."
