Cost of Living: Melbourne vs Sydney (2026)
Side-by-side comparison of living costs between Melbourne and Sydney, Australia.
The Verdict
Melbourne is $6,320/year cheaper than Sydney. You need to earn approximately $11,000 less per year to maintain the same lifestyle in Melbourne compared to Sydney.
Side-by-Side Cost Comparison
| Category | Melbourne | Sydney | Winner |
|---|---|---|---|
| Rent (1br/week) | $520 | $620 | Melbourne |
| Rent (2br/week) | $680 | $850 | Melbourne |
| Groceries/week | $125 | $135 | Melbourne |
| Utilities/month | $260 | $280 | Melbourne |
| Transport/month | $195 | $220 | Melbourne |
| Internet & Phone/month | $110 | $115 | Melbourne |
| Petrol/litre | $1.98 | $2.05 | Melbourne |
| Median house price | $1,050,000 | $1,420,000 | Melbourne |
| Median unit price | $620,000 | $830,000 | Melbourne |
| Cost of living index | 89 | 100 | Melbourne |
How Much More Do You Need to Earn?
Check exactly what you take home with our take-home pay calculator.
Which City is Cheaper — Category by Category
Net Difference in Annual Costs
Living in Melbourne saves you $6,320 per year compared to Sydney. That is $527/month or $122/week.
Explore Each City
Frequently Asked Questions
Is Melbourne or Sydney cheaper to live in?
Melbourne is cheaper to live in than Sydney by approximately $6,320 per year. Melbourne has a cost of living index of 89 compared to 100 for Sydney (Sydney = 100).
How much more do you need to earn in Sydney compared to Melbourne?
You need to earn approximately $11,000 more per year (pre-tax) to maintain the same standard of living in Sydney compared to Melbourne.
Is rent cheaper in Melbourne or Sydney?
A 1-bedroom apartment costs $520/week in Melbourne and $620/week in Sydney. Melbourne is cheaper for rent by $100/week.
Are groceries more expensive in Melbourne or Sydney?
Weekly groceries for a single person cost $125 in Melbourne and $135 in Sydney. Melbourne is cheaper for groceries.
Which city has cheaper property — Melbourne or Sydney?
The median house price in Melbourne is $1,050,000 compared to $1,420,000 in Sydney. Melbourne has cheaper property.
General information and estimates only — not financial, tax, or legal advice. Always verify with a licensed adviser or the ATO.