We’re not making headlines by revealing that living in Sydney ain't cheap. Our stunning Emerald City is home to the second most expensive real estate market in the world, Sydney drivers pay higher parking fees than most other global cities, and our city is home to a staggering 152,900 millionaires (making it one of the wealthiest cities in the world, despite the fact that most of us are counting our coins). If you were wondering if Aussies in other cities have it easier on the cozzie livs front, you’ll want to take a look at the 2025 Cost of Living Index by City – which ranked Sydney as the most expensive city in Australia (again).
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.
Like always, 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.
Our very own Harbour City topped the list for the most expensive Aussie city to live in, ranking 37th globally, just behind Paris and Amsterdam. The cost of living index here in Sydney is 67.6, meaning that everyday expenses are 32.4 per cent lower than in New York City, or 42.1 per cent lower when you factor in rent.
Next up is Canberra, with the second highest cost of living in Australia at 66.8, and the 41st most expensive in the world. Living in the capital is 33.2 per cent cheaper than in New York City, but is only 0.8 per cent more affordable than living in Sydney. And while the average cost of rent tends to be lower in Canberra, you’ll likely pay more for groceries and dining out. Adelaide takes third place for the highest cost of living in Australia, ranking 76th globally, with an index of 61.5. Melbourne follows closely behind in fourth (84th globally) at 60.9. Meanwhile, Perth ranks fifth (103rd globally) with an index of 58.9, and Brisbane rounds out the Aussie inclusions in sixth (118th globally) at 57.5.
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 data set here.
These are the Australian cities with the highest cost of living (excluding rent) in 2025:
- Sydney
- Canberra
- Adelaide
- Melbourne
- Perth
- Brisbane
Keen to save some cash in Australia’s most expensive city? Check out our readers’ top tips for living on a budget in the Harbour City over here.
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