Is Perth cheaper than Melbourne for cost of living?

Short answer: Perth is often cheaper than Melbourne overall, especially for housing. A realistic rule of thumb is that a comparable rental in Perth can be about 10%–25% cheaper than in Melbourne, but the gap depends heavily on suburb, commute, and whether you need a car.

For a rough monthly lifestyle comparison for a single adult:

• Perth: about A$2,400–A$3,800/month
• Melbourne: about A$2,700–A$4,300/month

For a family, the difference can be larger if Perth housing gives you more space for less:

• Perth: about A$4,800–A$7,500/month
• Melbourne: about A$5,300–A$8,300/month

What usually makes Perth cheaper:

• Rent/home prices: often the biggest savings
• Less need for a car in some areas: depending on suburb and commute
• More space for the money: especially for families

What can offset the savings:

• Flights and travel: Perth is more isolated, so interstate/international travel can cost more
• Groceries and some services: sometimes similar, occasionally higher
• Car ownership: if you live far from work or transit, Perth’s advantage shrinks quickly

Bottom line: If housing is your biggest expense, Perth is usually the better-value city. If you can earn meaningfully more in Melbourne or rely on public transport and inner-city living, Melbourne can still be the better overall fit.

Prices change a lot by suburb and time, so it’s worth checking current rental listings and recent sold/leased comps before deciding.