Melbourne is a city full of charm, coffee, and creativity — but is it affordable to live or visit? That depends on your lifestyle. In this post, we break down the cost of living, tourist spending, and how it compares with other major cities.
🏡 Is Melbourne Expensive to Live In?
Yes, Melbourne is considered one of the more expensive cities in Australia. Housing is the biggest factor. As of 2024, the average rent for a one-bedroom apartment in the city center is AUD $2,200/month, while outside the center it ranges between $1,400 to $1,700. Utilities and groceries add to the costs, with a typical monthly grocery bill around AUD $400 to $600 for one person.
Estimated Monthly Cost Comparison:
| Category | Single Person (AUD) | Family of 3 (AUD) |
|---|---|---|
| Rent | $1,400 – $2,200 | $2,600 – $3,800 |
| Groceries | $400 – $600 | $800 – $1,200 |
| Utilities & Internet | $150 – $250 | $250 – $350 |
| Transport | $120 – $200 | $250 – $400 |
| Misc. & Leisure | $300 – $500 | $600 – $800 |
| Total Estimated | $2,800 – $3,500 | $5,500 – $7,500 |
Costs vary widely based on choices like dining out versus cooking, public transport versus owning a car, and private versus public education.? Yes, Melbourne is considered one of the more expensive cities in Australia. Housing is the biggest factor. As of 2024, the average rent for a one-bedroom apartment in the city center is AUD $2,200/month, while outside the center it ranges between $1,400 to $1,700. Utilities and groceries add to the costs, with a typical monthly grocery bill around AUD $400 to $600 for one person.
🌎 Is It Expensive for Tourists?
Melbourne can be pricey for tourists, especially in peak seasons. Hotel rooms average AUD $150 to $250 per night, and restaurant meals cost around AUD $20 to $35 for a basic dish. That said, the city also offers many free or low-cost activities like strolling in the Royal Botanic Gardens, exploring street art in Fitzroy, or enjoying the beach in St Kilda.
Estimated Trip Costs for Couples Visiting Melbourne:
| Duration | Accommodation (Hotel) | Meals & Dining | Transport & Entry Fees | Estimated Total (AUD) |
|---|---|---|---|---|
| 1 Week | $1,050 – $1,750 | $600 – $850 | $100 – $150 | $1,750 – $2,750 |
| 2 Weeks | $2,100 – $3,500 | $1,200 – $1,700 | $200 – $300 | $3,500 – $5,500 |
| 3 Weeks | $3,150 – $5,250 | $1,800 – $2,550 | $300 – $450 | $5,500 – $8,200 |
🤔 Why Is Rent So High in Melbourne?
There are several reasons: strong population growth, high demand for inner-city housing, and limited availability of affordable apartments. Remote work and lifestyle migration trends have also kept housing prices elevated even post-pandemic.
🏠 Is Melbourne a Good Place to Live?
Despite the costs, Melbourne consistently ranks as one of the world’s most livable cities. It boasts world-class healthcare, education, public transport, green spaces, and cultural diversity. If you can budget wisely, it’s a fantastic place to settle.
📅 Is Melbourne Cheaper Than Sydney?
Generally, yes. While both cities are expensive, Sydney tends to have higher housing and restaurant costs. Many locals view Melbourne as the more affordable big city alternative, especially for students and creatives.
Cost of Living Comparison: Melbourne vs Sydney (Monthly Averages)
| Category | Melbourne (AUD) | Sydney (AUD) |
| Rent (1BR in city) | $2,200 | $2,800 |
| Rent (1BR outside) | $1,400 – $1,700 | $1,900 – $2,300 |
| Groceries | $400 – $600 | $500 – $700 |
| Utilities & Internet | $150 – $250 | $180 – $280 |
| Public Transport | $120 – $200 | $160 – $220 |
| Dining Out (Meal) | $20 – $35 | $25 – $40 |
| Total Estimated | $2,800 – $3,500 | $3,500 – $4,600 |
Summary: Can You Afford Melbourne?
Living or traveling in Melbourne isn’t cheap, but it doesn’t have to break the bank either. Smart budgeting, choosing the right neighborhood, and enjoying the many free cultural experiences can help you enjoy this vibrant city without overspending.