Rent affordability guide · AU
Cost of living in Melbourne: salary and rent guide
Typical 1-bedroom rent in Melbourne ranges from A$1,500 to A$3,800/month. To live comfortably here you generally need at least A$92,000/year.
Rent distribution in Melbourne
A$1,500
Budget
cheapest 10%
A$2,300
Median
most common
A$3,800
Premium
top 10%
These figures are for a 1-bedroom apartment equivalent in Melbourne. Prices vary significantly by neighbourhood.
What salary do you need?
How locals spend in Melbourne
Renters in Melbourne typically spend 23–44% of their gross income on rent.
Source: Consumer Affairs Victoria rental data + ABS Housing Expenditure Survey 2022–23 · 2023
Rental market overview
Melbourne's rental market tightened severely in 2022–2023 after pandemic-era loosening, with vacancy rates dropping below 1% and rents rising 15–20% year-on-year in some inner suburbs. The city's strong university sector, returning international students, and sustained population growth keep demand elevated.
Melbourne attracts professionals across finance, education, and creative industries, as well as a large international student population. The inner-city suburbs (Fitzroy, Collingwood, Richmond) are highly competitive, while the middle and outer ring offer better value with good tram and train access.
Renter tip
Preston, Reservoir, and Brunswick East offer excellent value on Melbourne's northern rail lines — typically 20–30% cheaper than equivalent inner-city apartments with similar transit access.
Neighbourhood guide
Budget areas
Mid-range areas
Premium areas
Explore Melbourne in detail
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Frequently asked questions
What is the average rent for a 1-bedroom in Melbourne?
A 1-bedroom in Melbourne averages A$1,900–$2,400/month across the city. Inner-city suburbs command A$2,200–$2,800, while outer suburban areas can be found under A$1,600.
Is Melbourne cheaper than Sydney to rent in?
Generally yes — Melbourne runs 10–15% cheaper than Sydney for comparable apartments, particularly in the inner suburbs. Both cities have seen significant rent increases since 2022.
What salary do you need to rent in Melbourne?
At the 30% rule and a median rent of roughly A$2,200/month, you'd need around A$88,000 gross per year. The Australian median full-time salary (~A$95,000) makes Melbourne more attainable than Sydney on local wages.