University students walking in Adelaide

5 Cities with Cheapest Cost of Living: Australia

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In terms of major cities, the cheapest place to live in Australia is Hobart, followed by Adelaide, Canberra, Perth, and Darwin.

Australia is known for its high standard of living, with the cost of living depending on the city. If you’re planning to study, work, or live in Australia on a budget, it pays to know which cities offer a lower cost of living while still providing a good quality of life.

Each of the cheapest cities has unique charm. They generally offer affordable housing, budget-friendly dining, and easy access to public transport. Whether you’re a student, professional, or just seeking a change, these cities combine affordability and lifestyle.

Cheapest City to Live in Australia

From Hobart’s scenic beauty to Darwin’s tropical charm, you’ll find options that suit your budget. With the right planning, you can enjoy the benefits of living in Australia without the high costs of cities like Sydney and Melbourne.

1. Hobart, Tasmania

Sandy Bay in Hobart
Sandy Bay, Hobart

Hobart, the capital city of Tasmania, is often recognised as the most affordable capital city in Australia. As it’s nestled between a stunning waterfront and a bunch of rugged mountains, Hobart will be the perfect place for you if you appreciate nature, art, and a quiet lifestyle.

Housing

Additionally, rent too is quite cheap than in other major Australian cities. A one-bedroom apartment in the city centre can cost you around AUD 1,600 per month, while on the outskirts, it might go down to AUD 1,300 for you. The University of Tasmania has a central location.

Food and Groceries

Speaking of the quality of life, the local markets at Hobart are going to add to that as they house affordable fresh produce, reducing your cost of living. This will ultimately help you cook at home, thereby saving a good amount of money for you. Or even if you eat out, an average meal at the restaurant will easily cost you AUD 15-20.

Transport

Now, with public transport, we’re primarily talking about buses, they too are quite cost-friendly with monthly bus passes costing about AUD 45. Also, biking is pretty popular in Hobart due to its size and traffic-free routes.

Must See

  • Mount Wellington (Kunanyi) – Offers incredible panoramic views of Hobart, ideal for hiking and nature lovers.
  • MONA (Museum of Old and New Art) – A world-renowned art museum showcasing unique and controversial art pieces.
  • Salamanca Market – Held every Saturday, it’s a vibrant market offering local produce, crafts, and street food.
  • Battery Point – A charming, historic neighbourhood with colonial architecture, cozy cafés, and shops.
  • Royal Tasmanian Botanical Gardens – A tranquil, beautiful garden showcasing Tasmania’s diverse plant life.

2. Adelaide, South Australia

Adelaide City skyline
Adelaide City

Adelaide is one of the best cities for students and families due to its pocket-friendly lifestyle and renowned educational institutions. Additionally, even though this city has a slower pace of life compared to Sydney or Melbourne, it offers you a rich cultural scene, top-notch wineries, and some splendid beaches.

Housing

Moving on, the cost of housing in this city is significantly lower than in the other cities mentioned above. Student accommodation in Adelaide in the main city will cost you around AUD 1,800, while outside the city, you will grab the same at AUD 1,400.

Food and Entertainment

Being known for its festivals and dining experiences, you can enjoy the fun of it without breaking your bank. Also, since groceries are competitively priced, a meal at an inexpensive restaurant will cost you just AUD 15. Adding to this, Adelaide’s thriving arts scene offers some really affordable entertainment too.

Transport

Next up, transport-wise, Adelaide is like the ones we talked about before. A monthly public transport pass costs around AUD 100, and the city’s infrastructure appreciates it when you ride bikes.

Must See

  • Adelaide Oval – A premier sports and entertainment venue with tours and cricket matches, plus concerts.
  • Glenelg Beach – A popular beach destination known for its golden sand, pier, and seaside restaurants.
  • Barossa Valley – One of Australia’s oldest and most prestigious wine regions, perfect for wine-tasting tours.
  • Adelaide Central Market – A bustling marketplace offering fresh local produce, gourmet foods, and multicultural cuisine.
  • Adelaide Hills – Scenic hills with wineries, wildlife parks, and charming towns like Hahndorf, Australia’s oldest German settlement.

Related: MBA in Adelaide City, South Australia

3. Canberra, Australian Capital Territory

National Gallery of Australia outside
National Gallery of Australia, Canberra

Even though Canberra is Australia’s capital city, it’s actually cheaper than you might expect. We say this as Canberra offers a high quality of life with quite a moderate cost of living. Additionally, as a hub for government jobs and universities, it’s a great place for professionals and students.

Housing

In terms of housing, this city is a bit on the costlier side compared to the cities discussed before. To rent a one-bedroom apartment in the middle of the city, you’ll have to shell out AUD 2,100, while for the edges, you’ll be paying AUD 1,600.

Food and Dining

Canberra’s food scene is diverse, offering you a range of budget-friendly options. An average dine-out costs around AUD 18-25 per meal, but again, the local farmer’s produce will always allow you to cook at home for sure.

Transport

Now, moving on to the commuting part, the public transport system in Canberra, which interestingly includes buses and light rail, is relatively inexpensive. Here too, a monthly pass for either of them will cost you around AUD 90, and cycling can be an option for you if you want to.

Must See

  • Australian War Memorial – A poignant museum and memorial honoring Australia’s military history.
  • Parliament House – Offers guided tours and the opportunity to watch Australia’s political process in action.
  • Lake Burley Griffin – A serene lake perfect for cycling, walking, kayaking, and sightseeing.
  • National Gallery of Australia – Houses an impressive collection of Australian, Indigenous, and international art.
  • Questacon – The National Science and Technology Centre, perfect for kids and adults to explore science through interactive exhibits.

Related: Study in Canberra

4. Perth, Western Australia

Perth is often considered as one of Australia’s most isolated cities. Despite that, it offers plenty of advantages, including its affordability. With its beautiful beaches, warm weather, and a more relaxed lifestyle, Perth is an excellent choice for you if you seek a vibrant city experience.

Housing

Now, coming to the housing part. They say that getting into student accommodation in Perth here is pretty tough because of the high demand owing to the prices. The cost of living in the city centre is about AUD 1,800 while outside the centre, prices drop to AUD 1,400.

Food and Leisure

So, if you’re the kind of person who prefers to eat out then this city’s per-meal cost comes to around AUD 20. Also, it’s kind of recommended by the locals that you buy vegetables in bulk if you want to save big. Apart from that, be it free outdoor activities, beach days or hiking, this city won’t disappoint you.

Transport

Well, in terms of transportation Perth is quite affordable as it offers free buses in the central areas. A monthly pass would only cost you around AUD120. Adding to this, cycling again is preferred by many in the city.

Must See

  • Kings Park and Botanic Garden – One of the largest inner-city parks in the world, with stunning views of Perth and the Swan River.
  • Cottesloe Beach – A picturesque beach with soft white sand, clear water, and great cafés along the shore.
  • Rottnest Island – A beautiful island known for its turquoise waters, beaches, and friendly quokkas.
  • Fremantle Markets – A vibrant weekend market with local arts, crafts, food, and live entertainment.
  • Elizabeth Quay – A modern waterfront precinct with restaurants, parks, public art, and beautiful river views.

5. Darwin, Northern Territory

Darwin is the northernmost capital city in Australia and has a tropical climate waiting for you. You gain a unique experience compared to the southern states of the country. Also, it’s often regarded as one of the quietest cities in Australia, given the less urban lifestyle.

Housing

Renting in this part of Australia can be quite affordable. A one-bedroom apartment costs around AUD 1,600 while outside the centre it drops to about AUD 1,200.

Food and Culture

In terms of this aspect, Darwin offers you a laid-back lifestyle with affordable food options, particularly from its famous night markets. Also, you can enjoy a meal at a dine-in for around AUD 15-20.

Transport

Speaking of public transport, we’d say it’s it’s the cheapest of all. As a monthly pass will cost you around AUD 60. Also, due to the compact nature of the city, many of the locals choose to walk instead.

Must See

  • Mindil Beach Sunset Market – Famous for its night market and stunning tropical sunsets over the ocean.
  • Litchfield National Park – Known for its dramatic waterfalls, swimming holes, and lush landscapes.
  • Crocodylus Park – A wildlife park offering close encounters with saltwater crocodiles and other native wildlife.
  • Museum and Art Gallery of the Northern Territory – Showcases Indigenous art, local history, and natural history exhibits, including Cyclone Tracy.
  • Darwin Waterfront Precinct – A lively area with a wave pool, swimming lagoon, restaurants, and green spaces.

Student Accommodation Help

amber is a recommended service to help you secure student accommodation of your choice on your study abroad journey. Having served 80 million students (and counting), amber is a one-stop shop for accommodation needs.

Download the amber app from the Google Play Store or App Store to book an affordable home for your adventure.

Related: ComparED Guide to Australian Higher Education

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The director of Lerna Courses, Andrew Lancaster, is experienced in analytics, technology, and business development. He has a PhD in Economics from the Australian National University. His writing helps people make informed choices about education and careers. He covers a range of topics, including university education, psychology, and professional growth.