Cost of living comparison

Ever wondered how much money you could save by living in a different city to the one you're currently in? We've broken down the main costs of living in the major cities across Australia, from housing and food to transport, and provided estimates of how much you're likely to pay.

Housing cost of living comparison

The most expensive place for housing in Australia is Sydney. Including utilities, it's 61% higher than the cost in Darwin, which is the least expensive capital city.

Monthly rent in a 2 bedroom apartment* is likely to cost you around $694 more a month in Sydney than in Melbourne. That increases to $1,020 if you want to live in an expensive area. You can save a small amount when it comes to utilities, however. Gas, electricity and water are $48 cheaper a month in Sydney and broadband costs are around the same.

The cheapest major city for housing in Australia is Darwin. Overall, it's 46% less expensive than in Sydney with rent being on average $1,557 cheaper a month. Almost all of the money you save is down to cheap rent though because utilities, Internet and other household goods in Darwin are among the most expensive in Australia.

Note: The figures in this guide are based on the average pricing found on the cost-of-living website Expatistan.

Most expensive cities for housing

Food cost of living comparison

Canberra is the most expensive city for food in Australia. On average, it's 8% more expensive than Melbourne which comes in second place and 26% more expensive than Darwin, the least expensive capital for food costs.

That said, the price of food across the country doesn't vary anywhere near as much as housing and rental prices.

In most cities, there's fairly little difference overall. For example, there's a 68c difference between the most expensive city for milk (Perth) and the cheapest (Syndey).

Most expensive cities for food

Here's a ranked list of the most expensive major cities for food.

• Canberra. Food is around 12% more expensive in Canberra than in other major cities
• Brisbane/Melbourne. Food in Brisbane and Melbourne costs around the same and is 8% cheaper than in Canberra
• Perth. Food in Perth is 4% cheaper than in Sydney
• Sydney. Food in Sydney is 13% cheaper than in Canberra
• Hobart. Food in Adelaide and Hobart costs around the same and is 11% cheaper than in Canberra
• Adelaide. Food in Adelaide is 15% cheaper than in Sydney.
• Darwin. Food in Darwin is 21% cheaper than in Canberra.

Transport cost of living comparison

Sydney is also the most expensive city for transport. Public transport in the country's most populated city is more expensive than in Adelaide by almost double (48%) although you'll pay about the same for a taxi. There's just a 4c difference between fuel in Sydney and Melbourne but the same car, simply bought in different cities, is likely to cost you almost $2,000 more.

Darwin and Hobart are much cheaper, particularly when it comes to public transport. They're 68% and 58% cheaper than in Sydney. You can get around both cities via public transport for less than $100 a month, which puts Sydney's staggering $200 bill into perspective.

Cheapest cities for transport

1. Darwin. The Northern Territory's capital is on average the cheapest major city in Australia when it comes to transport. It's 68% cheaper than in Sydney
2. Hobart. Transportation in Hobart is 57% cheaper than in Sydney
3. Adelaide. Coming in at just over the $100 mark, Adelaide is 48% cheaper than in Sydney.
4. Canberra. Transport costs 25% less than in Sydney
5. Perth. Transport costs 20% less than in Sydney
6. Melbourne. Transport in Victoria's capital is about 18% less than in Sydney
7. Brisbane. Transport is approximately 1% cheaper than Sydney.
8. Sydney. Last by some distance, Sydney is the most expensive city for all types of transport.

Overall cost of living comparison

The table below gives you an idea of the differences between the overall costs of living in Australia's state capital cities. Sydney is still the most expensive city in Australia — you'll pay around a quarter more for living expenses in Sydney than if you lived in Darwin or Melbourne, and even more if you stayed in Adelaide or Hobart.

The overall costs of living in Adelaide and Hobart are very similar. According to Finder stats, Hobart is marginally the cheapest capital city to live in, followed closely by Adelaide.

Did you know?

Finder research has found 11 million Australians are taking action to deal with rising costs, including 48% who have dropped their living standards.

Inflation by category

Average weekly household sped by category and state

Frequently Asked Questions

• What is the average cost of living in Australia?

  The average cost of living in Australia varies significantly depending on your city of residence and lifestyle. For a single person, monthly expenses excluding rent can typically range from $1,200 to $1,800. For a family of four, these costs might be between $4,000 and $6,000 per month before rent is factored in.

• What factors contribute to the differences in cost of living between Australian cities?

  Differences in the cost of living largely stem from variations in housing prices labour markets supply and demand for goods and transport infrastructure. Major capital cities like Sydney and Melbourne typically have higher housing costs due to population density and demand. Remote areas or those with lower economic activity may feature cheaper rent but sometimes higher costs for transport and imported goods.

• Which Australian cities offer the best balance of lifestyle and affordability?

  Cities like Hobart, Adelaide and Darwin consistently rank as more affordable capital cities particularly for housing and transport. While they may offer a different lifestyle compared to Sydney or Melbourne many find their relaxed pace strong community feel and access to nature highly desirable. Regional centres outside of these capital cities may also offer even greater affordability.

• How often are cost of living figures updated?

  The cost of living figures on this page are updated periodically drawing from current data sources like the ABS. Major changes to economic conditions or inflation are typically reflected in our annual reviews of these figures to ensure accuracy and relevance.

• How does cost of living affect income protection needs?

  Your cost of living directly influences the amount of income protection you might need. A higher cost of living means you require a larger monthly benefit to cover essential expenses like rent food and bills if you cannot work due to illness or injury. Understanding your personal or family cost of living is crucial for accurately calculating the right level of income protection coverage.

Written by

Cameron Thach

Writer

With a background in writing across education, Web3, and finance, Cameron’s mission is to create content that speaks directly to readers in a way that’s easy to understand, helping them navigate complex topics with confidence. Cameron studied a Bachelor of Commerce, Economics and Marketing at Macquarie University, graduating in 2019. See full bio

Co-written by

James Martin

Journalist

James Martin was the insurance editor at Finder. He has written on a range of insurance and finance topics for over 7 years. James often shares his insurance expertise as a media spokesperson and has appeared on Prime 7 News, Insurance News, 7NEWS and The Guardian. An experienced journalist, James' work has featured in publications including The Irish Times, Companies100 and In Business. He holds a Tier 1 General Insurance (General Advice) certification and a Tier 1 Generic Knowledge certification, both of which meet the requirements of ASIC Regulatory Guide 146 (RG146). See full bio

James's expertise

James has written 181 Finder guides across topics including:

• Car, home, life, health, travel and pet insurance
• Managing the cost of living
• Money-saving tips