City Comparison
Melbourne vs Sydney
Cost of Living Comparison 2026
Melbourne is ~11% cheaper overall
Numbeo 2026 country rankings (cost indices) and OECD 2025 PPP rates · Reviewed April 2026
Melbourne
Australia
COL+Rent
61.9
Rent Index
46.6
Groceries
79.3
Restaurant
69.8
Sydney
Australia
COL+Rent
69.7
Rent Index
54.9
Groceries
86.8
Restaurant
78.3
Monthly Cost Comparison
| Category | Melbourne | Sydney | Diff |
|---|---|---|---|
| Rent (1BR City) | $2,072 | $2,442 | $370 |
| Rent (1BR Outside) | $1,546 | $1,822 | $276 |
| Groceries | $441 | $483 | $42 |
| Restaurant Meal | $23 | $25 | $2 |
| Transit Pass | $104 | $114 | $10 |
| Utilities | $156 | $171 | $15 |
Monthly Budget Comparison
| Lifestyle | Melbourne | Sydney |
|---|---|---|
| Minimal | $2,207/mo | $2,545/mo |
| Typical | $3,118/mo | $3,585/mo |
| Comfortable | $3,862/mo | $4,423/mo |
Purchasing Power Equivalence
| Budget in Melbourne | ≈ in Sydney | Difference |
|---|---|---|
| $1,500/mo | $1,689/mo | +$189 |
| $2,000/mo | $2,252/mo | +$252 |
| $3,000/mo | $3,378/mo | +$378 |
Detailed Budget Analysis
See exactly how specific monthly budgets break down in each city:
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Frequently Asked Questions
Is Melbourne or Sydney cheaper to live in?
Melbourne is approximately 11% cheaper overall. Melbourne's COL+Rent Index is 61.9 vs Sydney's 69.7 (NYC = 100).
How much is rent in Melbourne vs Sydney?
A 1BR in Melbourne city center costs ~$2,072/mo vs $2,442/mo in Sydney. Outside the center: $1,546 vs $1,822.
What is $2,000/month in Melbourne worth in Sydney?
Using cost-of-living adjustment, $2,000/month in Melbourne has the purchasing power of approximately $2,252/month in Sydney.
Are groceries cheaper in Melbourne or Sydney?
Monthly groceries cost approximately $441 in Melbourne vs $483 in Sydney. Groceries Index: 79.3 vs 86.8 (NYC = 100).