Byron Bay, Australia

With a permanent population of just 10,538, this beachside town has become one of the most expensive residential areas on Australia's east coast. The average house price now exceeds AU$3.6 million, more than double what it was just a decade ago. Bureaucracy is a persistent headache, with the town's recent history of land rights agreements and heritage listings. And while the mild, subtropical climate draws 2 million tourists annually, the heavy rainfall and exposure to moist easterly flows can be a dampener. Byron Bay's allure as a haven for surfers, creatives, and wellness junkies remains strong, but the high costs and bureaucratic tangles make it a better fit for the affluent than the cash-strapped.