City Comparison
Sydney vs Melbourne
Cost of Living Comparison 2026
Melbourne is ~11% cheaper overall
Numbeo 2026 country rankings (cost indices) and OECD 2025 PPP rates · Reviewed April 2026
Sydney
Australia
COL+Rent
69.7
Rent Index
54.9
Groceries
86.8
Restaurant
78.3
Melbourne
Australia
COL+Rent
61.9
Rent Index
46.6
Groceries
79.3
Restaurant
69.8
Monthly Cost Comparison
| Category | Sydney | Melbourne | Diff |
|---|---|---|---|
| Rent (1BR City) | $2,442 | $2,072 | +$370 |
| Rent (1BR Outside) | $1,822 | $1,546 | +$276 |
| Groceries | $483 | $441 | +$42 |
| Restaurant Meal | $25 | $23 | +$2 |
| Transit Pass | $114 | $104 | +$10 |
| Utilities | $171 | $156 | +$15 |
Monthly Budget Comparison
| Lifestyle | Sydney | Melbourne |
|---|---|---|
| Minimal | $2,545/mo | $2,207/mo |
| Typical | $3,585/mo | $3,118/mo |
| Comfortable | $4,423/mo | $3,862/mo |
Purchasing Power Equivalence
| Budget in Sydney | ≈ in Melbourne | Difference |
|---|---|---|
| $1,500/mo | $1,332/mo | -$168 |
| $2,000/mo | $1,776/mo | -$224 |
| $3,000/mo | $2,664/mo | -$336 |
Detailed Budget Analysis
See exactly how specific monthly budgets break down in each city:
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Frequently Asked Questions
Is Sydney or Melbourne cheaper to live in?
Melbourne is approximately 11% cheaper overall. Sydney's COL+Rent Index is 69.7 vs Melbourne's 61.9 (NYC = 100).
How much is rent in Sydney vs Melbourne?
A 1BR in Sydney city center costs ~$2,442/mo vs $2,072/mo in Melbourne. Outside the center: $1,822 vs $1,546.
What is $2,000/month in Sydney worth in Melbourne?
Using cost-of-living adjustment, $2,000/month in Sydney has the purchasing power of approximately $1,776/month in Melbourne.
Are groceries cheaper in Sydney or Melbourne?
Monthly groceries cost approximately $483 in Sydney vs $441 in Melbourne. Groceries Index: 86.8 vs 79.3 (NYC = 100).