Most Melburnians (except for the millionaires among us) are being super careful with their cash right now, as the surging cost of living doesn't seem to be slowing down. Finding a coffee for under $5 feels like winning the lotto, paying rent is pretty much a full-time hustle and booking flights for a holiday – well, that almost requires taking out a loan. But it turns out that compared to other major cities across the country, we haven't got it so bad here. A new study has ranked Australian cities by affordability, and to be honest, Melbourne didn't fare as badly as we thought it would.
Twice a year, Numero updates its Cost of Living Index by City, where it ranks 327 of the world’s biggest cities on average living expenses. The team looks at how much locals typically pay for groceries, dining out, utilities, transportation and more, using New York City as the baseline with an index value of 100. As per usual, the top ten cities with the highest cost of living globally are almost all in Switzerland and the United States, with the top five spots in 2025 going to Zurich, Lausanne, Geneva, New York and Basel.
Melbourne ranked 84th globally, with a cost of living index of 61.5. This also made the Victorian capital the fourth most expensive Australian city on the list. Last year, the same rankings placed Melbourne as the most affordable major city in the country out of the six on the list, so reportedly in the last year it has become more expensive to live here. That checks out.
Topping the list for the most expensive cost of living in Australia for 2025 is Sydney, which ranks 37th globally, just behind Paris and Amsterdam. Next up is Canberra, with the second highest cost of living in Australia at 66.8, and the 41st most expensive in the world. Adelaide takes third place for the highest cost of living in Australia, ranking 76th globally, with an index of 61.5.
It’s worth noting that these rankings shuffle slightly when rent is factored in. Due to higher average rental costs, Melbourne moves up to third place and Brisbane climbs to fourth, pushing Adelaide to fifth and Perth to sixth. You can check out the full report with all the stats here.
These are the Australian cities with the highest cost of living in 2025:
- Sydney
- Canberra
- Adelaide
- Melbourne
- Perth
- Brisbane
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