Cost of living Melbourne: What to expect (2024)
Melbourne exudes irresistible charm, like a unique social mecca with a huge fire going that bursts with life and sparks of exciting entertainment. Festivals, live theatre, cinema, AFL, NRL, casinos, horse racing, dining in some of Australia’s top restaurants, coffee bars, boutique wineries and breweries, amazingly beautiful national parks and coastal scenery, quaint cottage industries, beautiful stone fruit, jams, pastries and much much more.
Melbourne is one of the most cosmopolitan multicultural cities in the world and has been ranked as the third most liveable city according to the Global Liveability Index.
You can picture yourself there already, can’t you? Snuggling up with a steaming cup of hot chocolate in front of a warm glowing fire on a cold winter’s night. But firstly it’s a good idea to weigh up the costs. To help you in this endeavour your Brisbane to Melbourne interstate removalists have researched many of the factors that might have an influence on your decision making. You may find that you are up for considerably more than other smaller cities. Similar to Sydney, Melbourne is one of the most expensive cities in which to live in Australia.
If you're considering the cost of living in Melbourne, here's a comprehensive breakdown to help you plan your budget effectively.
Melbourne housing costs
- Rent: The most significant expense in Melbourne is typically housing. In June 2023, the median rent was around $500 per week in metropolitan Melbourne and $420 in regional Victoria. Earlier in the year, the weekly rent was about $450, showing a notable increase over several months. This represents a better than 10% increase for the year. For those opting for units, the average weekly rent remained stable at $375 depending of course on the size of the unit.
- Buying a house: In 2023, the median house price was $1,020,000 but this includes all types of housing and all suburbs of Melbourne. Some suburbs will be less as will the houses. A unit tends to be about half that cost according to Living in Melbourne.
- Location factor: Living near the CBD will generally increase your housing expenses significantly, as Melbourne is one of Australia's priciest cities for renting and buying homes, second only to Sydney.
Utilities and other costs
If you are moving to Melbourne from a warmer location, consider not only the regular utility costs you’ll need to pay but also factor in heating costs. Melbourne can be colder for longer and the cost of heating your home will depend on the size of it plus how well it is insulated.
Melbourne also has the reputation of being able to serve up all four seasons in a single day so be prepared to rug up if heading out for the day. You can find a comprehensive cost analysis on living costs in Melbourne but we’ve also summed up the basics as follows:
- Electricity & gas: Monthly costs for electricity and gas vary by household size. For a single-person household, expect about $133, for two people $160, and for four people $281.
- Water: Water expenses are around $60 for a single-person household, $69 for two people, and $99 for a four-person household monthly. Keep in mind that if you are renting, this may be already covered as part of your rent.
- Internet: Internet costs, usually through the National Broadband Network, average between $70 and $95 per month, depending on the plan and speed you choose. Some choose not to get broadband at home and instead rely on mobile data so this may or may not be a cost you factor in.
For groceries, a single person may spend about $451 per month, two people around $624, and a four-person household approximately $880. This does of course depend on what you like to eat and buy.
some find that food prices are more expensive than where they lived previously. There are markets to shop at as well as the normal supermarket chains you are familiar with. This is what average spending on groceries looks like in Melbourne.
- Public Transport: If you're in an urban area with access to public transport, using trains, trams, and buses can reduce commuting expenses. A year-long Myki pass for Melbourne's public transport, for instance, costs around $1920 annually, breaking down to about $160 per month depending on how many zones you travel and any concessions you may be eligible for.
- Petrol Costs: The average petrol price in Melbourne is $1.80 per litre currently in December 2023. Opting for public transport or living in a more walkable area or even commuting on your own personal transport like a bicycle or scooter can save significant money on fuel.
- For your EV you should be able to charge your car for no more than $40 for a full charge and Victoria has a large number of charging stations available. For the how to of charging your vehicle check out the RACV tips for charging your EV.
Overall monthly budget (excluding housing and travel)
Numbeo gathers data that anyone can enter in regards to the cost of things in your area. It estimates the cost of living as follows:
- For a 1-person household: $1804 / month (without rent)
- For a 4-person household: $6392 (without rent)
Your lifestyle, including dining out, entertainment, and recreational activities, will also influence your monthly expenses. The number of entertainment venues and restaurants deal up a virtual smorgasbord of options for you and your family.
Sport is another hugely patronised and popular pastime particularly with Victoria being the home of AFL and also home of the famous MCG where up to 100,000 fans can enjoy watching their favourite teams do battle.
Education and healthcare
If you have children or specific healthcare needs, factor these into your budget. When it comes to higher learning institutions Victoria boasts some of the most prestigious in Australia which may well influence your moving decision particularly if you have children heading off to uni soon.
Living in Melbourne can be expensive, particularly in housing and transportation. However, by understanding the costs and planning accordingly, your interstate furniture removalists can help you manage a budget that suits your lifestyle and needs in this vibrant and cosmopolitan Australian city.
In these days of being able to work remotely for a majority of us, it is worthwhile to carefully weigh up the costs involved with moving, before taking that step but if you have decided to move to Melbourne from anywhere interstate then you will need the services of a reputable Brisbane to Melbourne interstate furniture removalist. Also, remember, prices can vary based on location, lifestyle, and personal choices, so consider these as general guidelines rather than fixed costs.