SavingsMate

Cost of Living: Melbourne vs Hobart (2026)

Side-by-side comparison of living costs between Melbourne and Hobart, Australia.

The Verdict

Hobart is $5,964/year cheaper than Melbourne. You need to earn approximately $10,000 more per year to maintain the same lifestyle in Melbourne compared to Hobart.

Side-by-Side Cost Comparison

CategoryMelbourneHobartWinner
Rent (1br/week)$520$420Hobart
Rent (2br/week)$680$530Hobart
Groceries/week$125$120Hobart
Utilities/month$260$260Tie
Transport/month$195$155Hobart
Internet & Phone/month$110$108Hobart
Petrol/litre$1.98$2.00Melbourne
Median house price$1,050,000$700,000Hobart
Median unit price$620,000$480,000Hobart
Cost of living index8980Hobart

How Much More Do You Need to Earn?

Salary needed in Melbourne$69,000/year
Salary needed in Hobart$59,000/year
Difference+$10,000/year
After-tax income difference$7,000/year

Check exactly what you take home with our take-home pay calculator.

Which City is Cheaper — Category by Category

Rent (1br/week)Hobart ($100 cheaper)
Rent (2br/week)Hobart ($150 cheaper)
Groceries/weekHobart ($5 cheaper)
Utilities/monthTie
Transport/monthHobart ($40 cheaper)
Internet & Phone/monthHobart ($2 cheaper)

Net Difference in Annual Costs

Annual cost in Melbourne$40,320
Annual cost in Hobart$34,356
Net difference$5,964/year

Living in Hobart saves you $5,964 per year compared to Melbourne. That is $497/month or $115/week.

Frequently Asked Questions

Is Melbourne or Hobart cheaper to live in?

Hobart is cheaper to live in than Melbourne by approximately $5,964 per year. Hobart has a cost of living index of 80 compared to 89 for Melbourne (Sydney = 100).

How much more do you need to earn in Melbourne compared to Hobart?

You need to earn approximately $10,000 more per year (pre-tax) to maintain the same standard of living in Melbourne compared to Hobart.

Is rent cheaper in Melbourne or Hobart?

A 1-bedroom apartment costs $520/week in Melbourne and $420/week in Hobart. Hobart is cheaper for rent by $100/week.

Are groceries more expensive in Melbourne or Hobart?

Weekly groceries for a single person cost $125 in Melbourne and $120 in Hobart. Hobart is cheaper for groceries.

Which city has cheaper property — Melbourne or Hobart?

The median house price in Melbourne is $1,050,000 compared to $700,000 in Hobart. Hobart has cheaper property.

General information and estimates only — not financial, tax, or legal advice. Always verify with a licensed adviser or the ATO.