Looking for affordable places to live in Australia? Compare rental costs across the capital cities, discover why Melbourne currently offers the lowest median house rent among Australia's capitals, and learn how to find cheaper suburbs and regional locations.
Australia is generally an expensive country to live in, particularly when it comes to housing. However, there are significant differences between cities, suburbs and regional areas.
The latest Domain Rental Report available in June 2026 shows that Melbourne had the lowest median weekly asking rent for houses among Australia's capital cities at $600 per week. That does not make Melbourne a cheap city in absolute terms, but it does make it the most affordable capital city for house rentals in the latest comparison.
Regional Australia can offer even lower rents in some locations. However, choosing a cheaper location should not be based on rent alone. Employment opportunities, transport, healthcare, schools, groceries, commuting and housing availability can significantly affect your actual cost of living.
The following figures are median weekly asking rents for houses from Domain's June 2026 Rental Report. They are useful for comparing capital cities, but they should not be interpreted as the price of every available property.
| Capital City | Median House Rent / Week | Approx. Monthly Equivalent* | Affordability Comment |
|---|---|---|---|
| Melbourne | $600 | ~$2,600 | Lowest capital-city house rent in the June 2026 comparison |
| Hobart | $625 | ~$2,708 | Relatively low compared with several mainland capitals, but small rental supply can be challenging |
| Adelaide | $650 | ~$2,817 | Below Brisbane, Perth, Canberra and Darwin in the June 2026 comparison |
| Brisbane | $700 | ~$3,033 | Higher than Melbourne, Hobart and Adelaide |
| Canberra | $710 | ~$3,077 | Higher rental costs, although property type and location make a major difference |
| Perth | $750 | ~$3,250 | Rental supply remains very constrained |
| Darwin | $760 | ~$3,293 | One of the most expensive capital markets for houses |
| Sydney | $850 | ~$3,683 | Highest median house rent among the capitals in this comparison |
*Monthly figures are approximate calculations from weekly rent multiplied by 52 and divided by 12. They are not separate market statistics.
Melbourne is an interesting case for renters. The city is widely considered expensive, but its rental market has recently become more affordable relative to other Australian capitals.
Domain's June 2026 data put Melbourne's median house asking rent at $600 per week, compared with $850 in Sydney, $700 in Brisbane, $650 in Adelaide, $750 in Perth, $710 in Canberra, $625 in Hobart and $760 in Darwin.
Melbourne's median unit asking rent was also $600 per week in the same June 2026 report. This means that renters should not automatically assume that choosing an apartment will always result in a large saving. The specific suburb, building and property size can make a substantial difference.
Melbourne does not have one single "cheapest suburb." Rental prices vary substantially depending on the property type, distance from the CBD, transport access, local amenities and current supply.
Renters looking for lower prices can often start by investigating Melbourne's outer northern, western and north-western suburbs rather than focusing exclusively on the inner city.
Areas farther from the CBD can offer more housing choices and larger properties for the money. Examples worth researching include parts of the northern and north-western metropolitan area.
Melbourne's western suburbs include a large range of houses, apartments and townhouses. Some locations can be considerably cheaper than inner-city and established eastern suburbs.
Moving farther from the CBD can reduce housing costs, although you should compare the saving against commuting time and transport costs.
Some middle-ring suburbs can offer a useful balance between rent, transport and access to employment compared with premium inner-city locations.
If you are not tied to a major capital city, regional Australia can provide additional opportunities to reduce housing costs.
Domain has identified regional locations where median weekly rents can be substantially below capital-city levels. In one of its recent analyses, examples included Stawell, Whyalla, Moe and Port Augusta, with some rental categories below $300 per week.
These figures demonstrate why regional Australia should be considered by people whose work, study or family circumstances allow them to live outside a capital city.
| Factor | Capital City | Regional Area |
|---|---|---|
| Rent | Generally higher | Can be considerably lower in some locations |
| Jobs | Usually greater variety | More dependent on local industries |
| Public transport | Usually better | Often more limited |
| Healthcare | Large range of services | Can be more limited depending on location |
| Entertainment | Large selection | Usually more limited |
| Space for money | Often less | Often more |
| Commuting | Can be expensive and time-consuming | Often shorter, but car dependence can be higher |
The cheapest advertised property is not always the cheapest place to live. Use several strategies when comparing housing.
Housing is only one part of your monthly budget. Before moving to a cheaper suburb or regional town, calculate the total cost.
For example, moving an hour farther from the CBD might save $50 per week in rent but add significant fuel, parking and commuting costs. The best affordable location is therefore the one that gives you the best overall budget rather than simply the lowest advertised rent.
A commonly used affordability benchmark is that housing costs should not consume more than approximately 30% of gross household income. This is only a guideline and does not account for every household's circumstances.
Domain's 2026 rental affordability analysis uses the 30% of pre-tax income benchmark when assessing rental affordability across Australia.
Melbourne's current rental position is particularly interesting for people choosing between Australia's largest cities.
Melbourne is substantially cheaper for median house rent in the latest Domain comparison. Sydney's June 2026 median house asking rent was $850 per week compared with $600 in Melbourne.
Brisbane's June 2026 median house asking rent was $700 per week, above Melbourne's $600. Brisbane remains attractive for other reasons, but housing affordability should be considered.
Adelaide's median house asking rent was $650 per week in June 2026, only $50 above Melbourne. The difference can vary by suburb and property type.
Perth's median house asking rent reached $750 per week in June 2026. Rental supply has remained particularly constrained, making affordability an important consideration.
If you are moving to Australia from overseas, the cheapest city is not necessarily the best city for your situation.
International students and new migrants should consider the relationship between housing and employment. Living in a cheaper regional location may reduce rent but can also make it harder to find suitable work in some professions.
Melbourne can be a strong compromise for people who want access to a major employment market, universities, public transport and a large international community while currently paying less median house rent than the other Australian capitals.
If you are comparing where to live in Australia, these IsMelbourne guides can help you make a more complete decision.
According to Domain's June 2026 rental data, Melbourne had the lowest median weekly asking rent for houses among Australia's capital cities at $600 per week.
Melbourne is currently the cheapest Australian capital city for median house asking rent according to the June 2026 Domain Rental Report. However, some regional cities and towns have substantially lower rents than Melbourne.
Affordable options can be found in some regional Victorian, South Australian and Tasmanian locations, as well as selected suburbs outside Australia's capital-city centres. Rental affordability changes over time, so current local listings should always be checked.
In the June 2026 Domain comparison, Adelaide's median house asking rent was $650 per week while Melbourne's was $600. However, actual costs vary significantly between suburbs and property types.
Melbourne remains an expensive Australian city, particularly for housing and everyday services. However, its median house rent is currently lower than the other Australian capital cities in the latest Domain comparison.
Some regional areas have much lower rents than Melbourne. However, regional living can involve higher transport costs, fewer jobs and fewer services, so the total cost of living should be compared rather than rent alone.
Compare Melbourne's rent, living expenses, transport and neighbourhoods before deciding where to live.
Explore Melbourne's Affordable Areas