Falling property prices and interest rate cuts have made it cheaper to buy rather than rent in 388 suburbs and towns around the country, a new report finds.

And if buyers are willing and able to spend an extra $50 a week in mortgage repayments over rent, the number of suburbs where purchasing becomes a viable option rises to 1419, according to RP Data's latest Buy vs. Rent report.

More than meets the eye ... the report on the affordability of buying compared to renting has sparked disagreement. Credit:Rob Homer

National research director Tim Lawless said the combination of steep price falls and significantly lower interest rates was creating new opportunities for renters keen to buy a property.

"For many buyers now may be a good time to either re-enter the market or buy their first home,” he said.