Cost of Living in Australia Melbourne

Melbourne is known for its world-class coffee, buzzing arts scene, and unpredictable weather. It’s also one of the most liveable cities on the planet. But what about the cost of living in Melbourne? Is it really that expensive, or is it just another Sydney comparison gone wrong? Let’s break it down housing, utilities, food, transport, and everything in between.

Is Melbourne Really That Expensive?

If you’ve ever wondered about the price of living in Melbourne, the answer depends on who you ask. Compared to Sydney, it’s slightly cheaper. Compared to Brisbane or Adelaide, it’s on the pricier side. Melbourne consistently ranks as one of the most liveable cities, but that doesn’t mean it’s cheap.

According to Mercer’s Cost of Living City Ranking, Melbourne sits as the 71st most expensive city in the world, right behind Sydney, which holds the title of Australia’s most expensive. But that number doesn’t tell the full story. Let’s look at what it actually costs to live here.

Housing Costs in Melbourne

Housing is usually the biggest living expense in Melbourne and like most cities, the closer you are to the CBD, the higher the rent. If you’re after a backyard and a bit of peace and quiet, suburban living will save you money, but it might mean a longer commute.

Average Rent Prices in Melbourne

Looking to buy instead of rent? Here’s what you’ll be paying per square metre:

For renters, Melbourne is actually one of the cheaper capital cities in Australia. The median house rent sits at $550 per week, second only to Sydney’s eye-watering $720 per week.

Electricity, Water, and Internet Costs

Once you’ve got a place, you need to keep the lights on. Electricity rates in Melbourne are among the highest in the country, with an average electricity bill in Melbourne sitting around $97 per month. Gas is a bit cheaper, but it still adds up.

Electricity and gas prices fluctuate based on usage and provider. If you’re looking to connect energy at a new place, comparing plans can save you some cash. If you want a same-day energy connection, providers like Move-In Connect can get your power sorted before you even unpack.

How Much Do Groceries Cost?

Food prices don’t vary much across Australia, but living expenses in Melbourne, Australia, can feel a little higher if you’re used to country town pricing. Here’s what you’re looking at for groceries:

These prices include everyday essentials like fruit, vegetables, meat, dairy, cleaning products, and personal hygiene items. If you love a Melbourne café brunch, budget extra because that smashed avocado and latte habit adds up fast.

Eating Out in Melbourne: What’s the Cost?

Melbourne has some of the best food in Australia, but it’s not always cheap. If you’re dining out regularly, here’s what you might spend:

• Coffee: $5–$6 for a regular flat white.
• Breakfast: $20–$30 for a café meal.
• Dinner at a mid-range restaurant: $30–$50 per person (without drinks).
• Fast food meal: $12–$15.

If you eat out a few times a week, living expenses in Melbourne, Australia can rise fast. Cooking at home is a great way to save money.

Transport Costs: Public vs. Private

Getting around Melbourne is easy, but it’s not always cheap. Whether you’re using public transport or driving, here’s what you’ll pay:

• Public Transport (Myki card, unlimited pass): $72 per month
• Fuel (monthly average): $192

Public transport is a solid option if you’re commuting from the best suburbs to live in Melbourne close to the city. If you’re further out, petrol costs and road tolls can make driving an expensive alternative.

Owning a Car in Melbourne: What’s the Damage?

Driving in Melbourne is convenient but expensive. Here’s what you’ll need to budget for:

• Registration: Around $900 per year.
• Insurance: Anywhere from $700 to $2,000 annually.
• Petrol: Roughly $192 per month, but higher if you drive long distances.
• Tolls: If you use CityLink or EastLink, expect to pay up to $100 per month.

Public transport can be a much cheaper alternative if you live near a train station or tram line.

Breaking Down the Cost of Living in Melbourne

Living costs vary depending on your lifestyle. Some people spend on gym memberships, phone plans, and weekly restaurant meals. Others keep things simple. Here’s an estimated monthly budget for an average Melbourne resident:

Is Melbourne an Affordable Place to Live?

It depends on what you compare it to. It’s cheaper than Sydney, but more expensive than Brisbane or Perth. It’s got world-class amenities, but they come at a price. Electricity rates in Melbourne can be high, power costs in Melbourne fluctuate, and rent prices depend on location.

If you’re moving to Melbourne and need energy connections, internet setup, or utility services, Move-In Connect makes the process simple if you’re on the move in Melbourne. Whether you need same-day energy connections or just want to compare plans, they’ve got you covered.

At the end of the day, life cost in Melbourne is what you make it. You can live large in the most expensive suburbs in Melbourne, or find a hidden gem that’s affordable and still offers a great lifestyle. Either way, if you’re moving, plan ahead because the cost of forgetting to set up your electricity before move-in day isn’t just money, it’s a cold, dark house.