Can't afford Byron Bay? No problem, these lifestyle towns are now outperforming it

The NSW coastal town of Byron Bay became a magnet for those looking to escape the city during the pandemic, and property prices skyrocketed.

And while prices in the desirable location are still at a premium, recent data shows other lifestyle towns across the country are outperforming it.

Byron Bay, which saw home prices skyrocket by 54.4 per cent during the pandemic years of 2020 to 2022, has fallen back to a growth rate of 6.7 per cent post-pandemic.

It still maintains a hefty median house price of $2.23 million according to the Ray White 2025 Regional Outlook report.

"The most expensive lifestyle destinations are slowing down," said Ray White Senior Data Analyst, Atom Go Tian.

"Bangalow, which had the strongest pre-pandemic growth, now shows the weakest post-pandemic performance at just 4.6 per cent.

"Byron Bay and the Southern Highlands follow similar patterns as prices push buyers away."

Likewise, in Victoria, the high-end coastal town of Lorne and the Mornington Peninsula, which boomed pre-pandemic and during the lockdown years of 2020-2022, have seen price growth plummet.

Lorne is still the most expensive lifestyle zone, identified in the report in Victoria, with a current median price of $1.57 million in 2025.

However, while the town experienced a 56.7 per cent price growth during the pandemic, prices have since declined and recorded a -0.6 per cent drop in the post-pandemic period.

"Now Victoria's lifestyle markets show clear signs of buyers moving to more affordable options within the state."

On the rise

So what lifestyle locations are seeing prices rising the most?

Places that have natural beauty and are attractive places to live, but with a more affordable price.

In NSW, the Blue Mountains that has a median house price of $1.05 million is the top lifestyle performer with a price growth of 14 per cent from 2023-2025.

"The NSW Central Coast and Blue Mountains, which saw modest early growth, now show stronger performance," Mr Go Tian said.

In Victoria, the strongest growth in prices has come in the Grampians, with an 11.6 per cent price growth post-pandemic, but with a median house price of just $338,000.

Heading north

In Queensland, it's a similar story with the Gold Coast and Sunshine Coast, which saw the biggest price rises during COVID, now being overtaken by less expensive coastal locations further north.

"Queensland lifestyle markets are following a clear pattern: established premium destinations are slowing down while emerging areas accelerate," said Mr Go Tian.

While the Gold Coast led the charge of 56.9 per cent growth in prices during the pandemic, this has pulled back to a still very healthy 26.4 per cent growth in post-pandemic years of 2023-2025. The current median house price is $1.29 million.

Meanwhile. Mission Beach in the far north of the state has seen prices rise by 39.1 per cent in 2023-2025. It's median house price is currently a much more affordable $523,000.