How Much Does It Really Cost to Live in Melbourne as a Single Woman?
The result may surprise you
I live in one of the most liveable cities in the world. But liveability comes at a price.
When I moved to Melbourne a decade ago, I was shocked by the cost of living. $3.5 for a coffee felt outrageous (even though Melbourne has the best coffee - it’s a fact, not bias), now, it feels like a steal.
Post-COVID, the cost of living has skyrocketed. These days, a coffee costs roughly $5. If you want soy/almond/oat milk? Add another $0.5. A $15 lunch is considered a bargain. Rental prices keep climbing. As a single woman, I often wonder: “How much is enough to live comfortably in this city?”
The Reality of Living Costs in Melbourne
Let me break this down into different categories.
Housing
Housing is by far the biggest expense especially if you are single. In Australia, we go by weekly but to make it easier for the non-Aussies, I will include a monthly figure.
According to the Homes Victoria report, the median rent in Metro Melbourne is $550/week (roughly $2,400/month) and regional Victoria is $450/week ($1,950/month).
For context, I pay less than $500/week for a one-bedroom apartment in a suburb just 20 minutes from the city, and 25 minutes walk to the beach. Meanwhile, my friend pays $650/week for a larger apartment closer to the beach.
If you’re looking to buy, Australia’s main real estate research site shows the following:
screenshot from realestate.com
If you want a slightly more spacious apartment, with a spare room to rent it out or for your family and friends to visit, expect to pay a median price of $625,000.
screenshot from realestate.com
Transportation
Transportation costs can add up, especially if you own a car.
If you take public transport, Melbourne CBD (Central business district) has free tram zone. Outside of the free tram zone, a single trip costs $5.3 one way. So assuming you take public transport to work, it will cost you $10.6 a day for a return trip. If you take public transport frequently, you can get a 28-day Myki pass costs you $178.
If you own a car, it depends on whether you paid the car outright, or financing (leasing option is not common here in Australia). If you take the finance option, a $30,000 car loan at 7.29% for 5 years will cost you $598/month.
Petrol is high here at an average of $1.75/litre. If you drive a small car with a full tank of 45L, it will cost you $76.5 to fill up.
Plus you will need to pay for registration (roughly $850/year) and car insurance around $1,000+/year.
Groceries and dining out
This category varies depending on personal habits.
I eat out roughly 3 days a week and spend approximately $1,000/month in groceries and eating out.
Eating out isn’t cheap but tipping is not mandatory so that helps. We do have a holiday surcharge of 10 - 15% so if you are eating out on a Sunday or a public holiday, expect to pay more.
Coming from Toronto, I found eating out is slightly cheaper in Melbourne because of tipping. In Toronto, you are bound to pay 13% tax on top plus a minimum of 15% tip, so that’s 28% extra - and sadly, horrible services too.
Melbourne has much better service in general.
Utilities, phone and internet
Depending on the time of the year, as we do get quite cold in winter and extremely hot in summer. I pay an average of $100/month for my electricity. Gas is included in my rent so that’s a plus, and water is roughly $50 quarterly.
Internet costs about $50/month and my phone bill is $40 for about 30GB and I can roll over. I’m constantly accumulated close to 100GB because I never used up the 30GB.
Lifestyle and fitness
Melburnians are pretty outdoorsy. It’s hard not to because we have a big cafe culture here, and we are blessed with beautiful parks, beaches and museums. There are also many outdoor festivals and events throughout the year. Many of them have free entry.
If you want to sign up for a yoga or pilate class, it costs around $20 - $25/session but you also have other choices. I recently found out a Feel Good Yoga place where they have community yoga on the roof top overlooking the beach and you pay whatever you feel like. Pretty awesome.
One thing that surprised a lot of people when they came to Melbourne is that Melbourne has REALLY good food. We are also very multicultural so you will find different cuisines here.
I also think people are really creative here. Many restaurants take the local cuisines and tweak them to something fusion.
Here are some examples:
This is one of the sushi takeaway place - the soft shell crab taco was super yummy!
Vietnamese banh mi is huge in Melbourne and this one is from a place called Heartbaker. Their banh mi comes with crackling pork…honestly made in heaven (photo image taken from What’s on Melbourne website).
Exploring restaurants and cafes is definitely a big part of the lifestyle here.
How much does a single woman really need?
There are of course a few other things such as TV subscriptions or health insurance and I haven’t covered 100% here but as an estimate, to live a comfortable lifestyle in Melbourne will cost around $4,720/month (approximately $3,050 USD).
The average annual salary in Melbourne is around $100,000 with a take home income of $6,253/month.
Using the same calculation, if you make $80,000 a year with a take home income of $5,161/month (around US$52,000 a year), you can live pretty comfortably in Melbourne.
What do you think?
Do you feel Melbourne is a truly liveable city? How does it compare to where you live?
I share my journey as a late starter on the path to financial freedom, offering personal insights and practical steps I've learned along the way. Disclaimer: These are my views, not financial advice. Always do your own research before making any financial decisions.
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Wow Sarina, here in Germany the cost of living is below what you pay in Melbourne, even though we pay for coffee anywhere between 3,5 and 5 EUR.
Looks like the comment got cut off - but I will interested to see how much does it cost to live in Germany. Maybe you can write a Germany version? Mind you, I’m in Melbourne so the living cost is lower than Sydney. Probably add at least $1K if you are in Sydney as house price is a lot higher than Melbourne.