Affordable and Unaffordable Areas in Wales Identified by ONS
The most and least affordable locations to purchase a home in Wales have been identified in new data released by the Office for National Statistics (ONS).
Tylorstown, Ferndale, and Maerdy, situated in the South Wales Valleys, rank among the most affordable areas, with average house prices ranging from £87,000 to £94,000.
The least affordable area is Lisvane, a suburb of Cardiff, where the average house price stands at £507,000.
The ONS determines affordability by analyzing a combination of average earnings and average house prices. An area is considered affordable if the average home price does not exceed five times the average earnings of those employed nearby.
According to the data, the top ten cheapest communities for average house prices in Wales are:
- Tylorstown, Rhondda Cynon Taf
- Ferndale and Maerdy, Rhondda Cynon Taf
- Penrhiw-ceibr, Rhondda Cynon Taf
- Treherbert, Rhondda Cynon Taf
- Abertillery South and Llanhilleth, Blaenau Gwent
- Tonypandy West and Clydach Vale, Rhondda Cynon Taf
- Caerau near Maesteg, Bridgend
- New Tredegar and Darren Valley, Caerphilly county
- Merthyr Vale, Troed-y-rhiw and Bedlinog, Merthyr Tydfil
- Landore, Swansea, and Ystrad & Llwynypia and Pentre, Rhondda Cynon Taf (tied)
The average house price in Tylorstown was £87,000 in the year ending September 2025, while the average earnings for workers in Rhondda Cynon Taf were £33,976.
ONS data indicated that average house prices across Rhondda Cynon Taf overall were £163,000, representing a 4.2% increase compared to the previous year.
Rhys Chapman, 31, owner of Chapman estate agents in Porth, Rhondda Cynon Taf, commented on the market conditions, stating:
"Properties in the area listed for less than £170,000 are attractive to first-time buyers."
He also noted increased interest from buyers "coming over the bridge into the valleys," highlighting the "price bracket" and "affordable range" of homes available in areas such as the Rhondda.
Most Expensive Communities for House Prices in Wales
The data also lists the top 10 most expensive communities in Wales by average house price, including:
- Rhaglan & Llantilio Crossenny, Monmouthshire
- Cowbridge, Vale of Glamorgan
- Ogmore-by-Sea & Llandow, Vale of Glamorgan
- Chepstow North & Trellech, Monmouthshire
- Peterston-super-Ely & Wenvoe, Vale of Glamorgan
- Crickhowell, Llangynidr & Llangorse, Powys
The average house price in Lisvane was £507,000, while the average earnings for workers in Cardiff were £38,225.
Jonathan Thomas, company director of Thomas estate agents, remarked on changes in the housing market in Wales following the Covid-19 pandemic, noting:
"The housing market in Wales flipped after the Covid pandemic as people started working from home."
He observed that buyers have been moving away from more expensive areas due to reduced commuting needs and purchasing properties further out that are "far cheaper."
"I've carried out viewings recently with a couple from Birmingham who were moving to Porth for work and regularly meet with people from Bristol who are looking to move to our area," said Thomas, whose agency is based in Tonypandy.
Estate agents in the region have indicated that the Metro upgrade to the core valley railway lines has enhanced Cardiff's accessibility for those relying on public transport for commuting.
Jonathan added:
"I'd say the trend that I notice the most is the fact that people now value outdoor activity a lot more than the ease of commuting or being located in a busy city centre."
House Price Trends and Market Outlook in Wales
House prices in Wales increased at a faster rate than the UK average last year, with some areas experiencing rises of up to 7%, according to ONS data published earlier this year.
The average house price in Wales is £213,000, which is six times the median annual average earnings of £35,800.
Iain Mansfield, chief executive officer at Principality Building Society, commented on the market's future, stating:
"Modest house price growth in Wales is likely to continue.
The Welsh housing market continues to show signs of resilience.
Looking ahead, there is a large degree of geopolitical uncertainty - but there is underlying resilience, particularly among first-time buyers."
