Sydney vs Melbourne: Cost of Living Comparison 2025
Australia
Australia
Comparing the cost of living between Sydney, Australia and Melbourne, Australia reveals significant insights for anyone considering relocation or travel in 2025. Our comprehensive analysis shows that Sydney is more affordable than Melbourne by approximately 5.6%. This comparison covers essential living expenses including housing, food, transportation, and utilities, providing you with a complete picture of what to expect financially in each city.
Key Cost Differences
Housing costs in Sydney are higher than in Melbourne by 23%. A one-bedroom apartment in Sydney's city center costs around A$3,000, while the same in Melbourne is approximately A$2,200.
Dining out in Sydney costs about the same compared to Melbourne. An inexpensive restaurant meal costs A$20 in Sydney versus A$20 in Melbourne.
Public transportation in Sydney is more expensive, with monthly passes at A$200 compared to A$170 in Melbourne.
Overall Cost of Living
-5.6%
cheaper
Rent
-18.8%
cheaper
Restaurant Prices
-5.6%
cheaper
Groceries
-5.9%
cheaper
Monthly Budget Breakdown
When breaking down monthly expenses, a single person in Sydney can expect to spend approximately A$804 per month (excluding rent), while in Melbourne, the same lifestyle would cost around A$786. For families, these figures increase significantly, with a family of four requiring about A$2,814 monthly in Sydney versus A$2,750 in Melbourne. These estimates include groceries, dining out, transportation, utilities, and entertainment, providing a realistic picture of day-to-day living costs in each city.
Detailed Cost Comparison
🏠 Housing Costs (Monthly Rent)
🍽️ Food & Dining
🛒 Groceries
🚌 Transportation
💡 Utilities & Internet
Tips for Moving Between Cities
For those considering a move from Melbourne to Sydney, the cost savings can be substantial, particularly in housing and daily expenses. However, it's important to factor in salary differences and job opportunities. Conversely, moving from Sydney to Melbourne requires careful financial planning. Consider negotiating salary adjustments that reflect the higher cost of living, and research neighborhoods outside the city center for more affordable housing options while maintaining reasonable commute times.
Quality of Life Indices
Sydney
Melbourne
Frequently Asked Questions
Is Sydney more expensive than Melbourne?
No, Sydney is approximately 5.6% cheaper than Melbourne. You'll find significant savings in housing, food, and transportation costs.
How much salary do I need in Sydney compared to Melbourne?
To maintain the same standard of living, you would need approximately 95% of your Melbourne salary when living in Sydney. For example, if you earn $50,000 in Melbourne, you'd need about $47,368 in Sydney for a comparable lifestyle.
What are the biggest cost differences between Sydney and Melbourne?
The most significant cost difference is in housing. Rent prices differ by approximately 23%, making it a major factor in your budget planning. Transportation and utilities show smaller variations between the two cities.
Which city is better for expats and digital nomads?
Melbourne offers better purchasing power, making it more attractive for those earning in strong currencies. However, Sydney provides lower living costs, which benefits budget-conscious travelers. Consider Sydney if you prioritize cultural experiences, or Melbourne for better value.
What's a reasonable monthly budget for Sydney vs Melbourne?
In Sydney, a single person needs approximately A$3,004 per month (including rent), while a family of four requires about A$6,614. In Melbourne, these figures are A$2,486 for singles and A$5,550 for families. These estimates include housing, food, transportation, and basic entertainment.
The cost of living comparison between Sydney and Melbourne in 2025 shows moderate differences across various expense categories. Whether you're planning a relocation for work, considering retirement options, or simply curious about living costs, understanding these differences is crucial for making informed financial decisions.
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