Comparing Sydney and Melbourne in 2025 for migrants and expats: cost of living, jobs, and lifestyle to help you choose Australia’s best city.

Introduction

Australia’s top cities—Sydney and Melbourne—attract thousands of newcomers every year. As of 2025, both offer world-class living, but their differences can shape your experience as a migrant or expat. Which city delivers a better lifestyle? This guide unpacks the facts—costs, jobs, and quality of life.

H2: Cost of Living and Housing—How Do Sydney and Melbourne Compare?

For anyone deciding between living in Sydney vs Melbourne, cost of living is a crucial factor. In 2025, Sydney remains Australia’s most expensive city. Monthly living costs are about 12–13% higher in Sydney than in Melbourne, driven mainly by rent. For example:

  • 1-bedroom apartment in city center: Sydney A$3,329, Melbourne A$2,410 (27% less in Melbourne).
  • Groceries and utilities: Groceries cost 0.7% more in Melbourne, while utilities are typically higher in Sydney.
  • Transport: Monthly public transport pass is A$217 in Sydney and about A$188 in Melbourne.
  • Median house price: Sydney’s median is 38% higher than Melbourne (A$1.2 million vs A$890,000).

Even with slightly higher restaurant costs in Melbourne, affordability tips in Melbourne’s favor, especially for renters and families.

H2: Lifestyle, Culture, and Quality of Life—Which City Offers More?

When it comes to the famed Sydney vs Melbourne lifestyle 2025 question, the two cities shine in distinct ways.

Sydney dazzles with its iconic harbor, beaches, and energetic pace. The city boasts the country’s strongest corporate and financial sector, abundant outdoor activities, and more sunshine. Sydney ranked 6th globally for quality of life in 2025, with particular strengths in human capital and business opportunities. However, housing costs remained a key challenge. Residents benefit from multicultural communities, vibrant nightlife, and excellent public transport.

Melbourne is renowned for its arts scene, diverse food culture, coffee obsession, and sporting events. It often feels more relaxed, with a slightly “European” vibe. Melbourne continued its strong showing in global livability indexes—holding its place among the world’s most livable cities and achieving a higher overall quality of life index than Sydney (195 vs 186). Melbourne’s weather is more variable, but the city is beloved for its green parks and cultural festivals. Renters, creatives, and families often prefer Melbourne’s affordability and sense of community.

H2: Careers and Migration—Job Opportunities and Community Support

Job seekers weighing Melbourne or Sydney for expats should note industry differences.

  • Sydney excels in finance, technology, banking, and tourism, with a higher number of company headquarters and strong post-study employment prospects.
  • Melbourne is a powerhouse in healthcare, education, hospitality, and creative industries, offering robust networks for new arrivals.

Both cities have high graduate employment rates (Sydney 84%, Melbourne 80%), and each welcomes a large, diverse migrant population. Sydney’s workforce is slightly larger, but Melbourne is renowned for its migrant-friendly neighborhoods and plentiful support groups for newcomers.

In summary, choose Sydney for energy and jobs in finance or tech; pick Melbourne for creativity, affordability, and a laid-back lifestyle.

Conclusion

So, which city is better to live in—Sydney or Melbourne? For a high-powered, sunny, and cosmopolitan life, Sydney is unbeatable, though expensive. For culture, affordability, and a relaxed urban vibe, Melbourne is ideal. Your best city to live in Australia 2025 depends on your priorities—career, costs, or community. Explore both to find your perfect fit.