Cost of Living in Melbourne

Melbourne is one of Australia's major economic hubs, and the cost of living here can be high. It is one of the country's more expensive cities, although you will usually pay more in Sydney, and sometimes in Canberra and Adelaide too. If you're on a budget, there are plenty of ways to save money while still experiencing all the city has to offer.

Cost of accommodation in Melbourne

The cost of accommodation in Melbourne will be your most considerable outlay. Rental prices near the city centre can be exceptionally high. Melbourne is now cheaper to buy a home in than several other capitals, yet its rental market is still tight and competitive. As with most cities, the further out you live, the more you can save; even so, there are a few pockets that are still expensive an hour or more beyond Melbourne's metropolitan fringe.

Best and Worst Areas and Suburbs in Melbourne 
Renting Expat Accommodation in Melbourne

Cost of transport in Melbourne

Public transport is the cheapest and most convenient way to get around, so the cost of transport in Melbourne is easy to keep down if you go without a car. The whole metropolitan network is a single fare zone, so you pay the same fare whether you travel one stop or all the way across town. Trams inside the central Free Tram Zone are free, a real help if you mostly move around the city core. Fares are not the bargain they once were, and locals grumble about steady increases, but for most commutes, public transport is still cheaper than running a car. Plenty of city dwellers skip car ownership altogether to avoid traffic jams, parking fees, fuel costs, and tolls. Budget for fuel, insurance, registration, and maintenance if you do opt for a personal vehicle.

Getting Around in Melbourne

Cost of groceries in Melbourne

The cost of groceries in Melbourne is roughly in line with the national average, and often a little below it. For fresh produce, lower prices, a lively atmosphere, and speciality ingredients the big chains often lack, head to the city's markets. You will find fresh food markets in the city centre and in suburbs across Melbourne, and it usually pays to see what the local traders have on offer. Locals swear by the markets and discount supermarkets to keep the grocery bill down, although for packaged and processed goods, the big chains are often just as cheap.

Cost of entertainment and eating out in Melbourne

The cost of entertainment and eating out in Melbourne need not be steep: alongside its many fine-dining restaurants, the city has plenty of places to eat well without breaking the bank. Restaurants that serve seriously good food for little more than the price of a fast-food meal are common. Locals are proud of the city's 'cheap eats' and are usually more than happy to share recommendations.

You will find entertainment to suit most budgets. Melbourne is well known for its arts scene. Live music, theatre, gallery exhibitions, and year-round festivals are easy to find, and many are free or cheap. The major public galleries charge nothing to see their permanent collections. Many of the city's parks, gardens, beaches, and riverside trails are free to visit and popular spots for a walk or a swim.

Movie tickets and sporting events are priced much like in other big Australian cities. Melbourne is also known for its nightlife. You will find pubs, bars, clubs, and live music venues at every price point. One thing to budget for: alcohol is taxed heavily here. Melbourne is regularly ranked the world's priciest city for a beer, so a big night at the pub gets expensive fast.

Lifestyle in Melbourne

Cost of education in Melbourne

If you have children, the cost of education in Melbourne will be a major factor. Public schools in Melbourne are largely free for Australian citizens and permanent residents, although temporary residents may have to pay for tuition. The quality of public schools in Melbourne is generally high, and many families are happy to send their children to them.

Melbourne also has plenty of private schools, among them religious schools and international schools that follow foreign curricula. Fees are high, and even higher at top-tier and international schools. For families who want a particular style of schooling, or their children on a home-country curriculum, the fees are often worth paying.

Education and Schools in Melbourne

Cost of healthcare in Melbourne

Medicare, Australia's public health system, keeps the cost of healthcare in Melbourne down for many residents. For citizens and permanent residents, many healthcare services are free or heavily subsidised. This includes consultations with health professionals and hospital care.

Expats who are not eligible for Medicare will need to rely on private health insurance. Private cover is available at a range of price points, from basic hospital-only policies up to comprehensive plans. Even with private insurance, you can still face out-of-pocket costs for treatment.

Healthcare in Melbourne is generally of a high standard, and although it can be expensive, many expats consider it good value for the quality of care.

Healthcare in Melbourne

Cost of living in Melbourne chart

Prices are listed in Australian dollars (AUD) and may vary depending on the product and service provider. The list below shows average prices for Melbourne in August 2026.