The cheapest suburbs to live in Melbourne in 2026-27, ranked by running cost
Carlton is the cheapest suburb in Greater Melbourne to run a house, at $4,722 a year. All 25 of the cheapest sit within 5 km of the CBD. If you have been told to look further out to save money, the numbers here say the opposite for anyone who drives to the city, and they show where that advice does hold.
Carlton is the cheapest Melbourne suburb to run a house in 2026-27, at $4,722 a year ($91 a week), followed by East Melbourne at $4,760 and Melbourne at $5,212. The median across 525 Greater Melbourne suburbs is $10,291. The figure is council rates, water, the drive to the CBD and estimated insurance, not a purchase price.
Key statistics
- Suburbs ranked
- 525
- Cheapest (Carlton)
- $4,722
- Median suburb
- $10,291
- Median, per week
- $198
This ranks what a house costs to run, not what it costs to buy. Every figure is council rates plus water plus the drive to work plus home insurance, for one year, the same total each suburb's own page shows. SuburbCost publishes no property prices, rents or medians.
The 25 cheapest Melbourne suburbs to run
Carlton costs $4,722 a year, about $91 a week. Its rates and water are ordinary for Melbourne. What it barely pays for is the commute: $551 a year to drive 1.6 km to the CBD.
Every suburb's figures: download all 525 as a CSV.
| Rank | Suburb | Council | From CBD | Rates | Water | Drive | Insurance (est.) | Total | A week |
|---|---|---|---|---|---|---|---|---|---|
| 1 | Carlton | Melbourne | 1.6 km | $1,322 | $1,499 | $551 | $1,350 | $4,722 | $91 |
| 2 | East Melbourne | Melbourne | 1.7 km | $1,322 | $1,499 | $589 | $1,350 | $4,760 | $92 |
| 3 | Melbourne | Melbourne | 2.1 km | $1,322 | $1,514 | $726 | $1,650 | $5,212 | $100 |
| 4 | Parkville | Melbourne | 3.2 km | $1,322 | $1,499 | $1,064 | $1,350 | $5,235 | $101 |
| 5 | Southbank | Melbourne | 1.3 km | $1,322 | $1,514 | $514 | $2,000 | $5,350 | $103 |
| 6 | South Wharf | Melbourne | 1.6 km | $1,322 | $1,514 | $550 | $2,000 | $5,386 | $104 |
| 7 | Docklands | Melbourne | 1.8 km | $1,322 | $1,499 | $629 | $2,000 | $5,450 | $105 |
| 8 | North Melbourne | Melbourne | 2.5 km | $1,322 | $1,499 | $858 | $2,000 | $5,679 | $109 |
| 9 | West Melbourne | Melbourne | 3.8 km | $1,322 | $1,499 | $1,254 | $1,650 | $5,725 | $110 |
| 10 | South Melbourne | Port Phillip | 2.3 km | $1,661 | $1,514 | $773 | $1,850 | $5,798 | $112 |
| 11 | Fitzroy | Yarra | 2.1 km | $1,748 | $1,499 | $705 | $1,850 | $5,802 | $112 |
| 12 | Albert Park | Port Phillip | 3.7 km | $1,661 | $1,514 | $1,224 | $1,500 | $5,899 | $113 |
| 13 | Richmond | Yarra | 3.6 km | $1,748 | $1,499 | $1,198 | $1,500 | $5,945 | $114 |
| 14 | Collingwood | Yarra | 2.6 km | $1,748 | $1,499 | $883 | $1,850 | $5,980 | $115 |
| 15 | Fitzroy North | Yarra | 3.9 km | $1,748 | $1,499 | $1,297 | $1,500 | $6,044 | $116 |
| 16 | Port Melbourne | Melbourne | 4.2 km | $1,322 | $1,514 | $1,386 | $1,850 | $6,072 | $117 |
| 17 | Carlton North | Yarra | 3 km | $1,748 | $1,499 | $996 | $1,850 | $6,093 | $117 |
| 18 | Clifton Hill | Yarra | 4.1 km | $1,748 | $1,499 | $1,371 | $1,500 | $6,118 | $118 |
| 19 | Kensington | Melbourne | 4 km | $1,322 | $1,499 | $1,318 | $2,000 | $6,139 | $118 |
| 20 | Princes Hill | Yarra | 3.5 km | $1,748 | $1,499 | $1,182 | $1,850 | $6,279 | $121 |
| 21 | South Yarra | Stonnington | 3.7 km | $1,687 | $1,514 | $1,228 | $1,850 | $6,279 | $121 |
| 22 | Middle Park | Port Phillip | 4.1 km | $1,661 | $1,514 | $1,366 | $1,850 | $6,391 | $123 |
| 23 | Cremorne | Yarra | 3.1 km | $1,748 | $1,499 | $1,052 | $2,250 | $6,549 | $126 |
| 24 | Abbotsford | Yarra | 3.4 km | $1,748 | $1,499 | $1,147 | $2,250 | $6,644 | $128 |
| 25 | St Kilda West | Port Phillip | 5 km | $1,661 | $1,514 | $1,652 | $1,850 | $6,677 | $128 |
These totals assume a drive to the CBD. See what your shortlist costs with your own commute and household →
These figures assume a typical household and commute. Find the Melbourne suburbs that fit your own budget →
Why the inner suburbs are the cheapest to run
The commute is the only cost that changes much from one suburb to the next. Across the 525 suburbs, the modelled drive to the CBD ranges from $514 to $18,200 a year. Council rates move by $1,747 from the lowest council to the highest, insurance by $1,550 and water by $545.
So the rate notice, the number most people check first, decides the least. Greater Dandenong City Council has the lowest average residential rate in Melbourne at $1,063, and Nillumbik Shire Council the highest at $2,810. A household that moves from the inner city to the outer suburbs and keeps driving to work in the CBD can add far more in fuel and car costs than any rate difference saves.
80 of the 525 suburbs sit within 10 km of the CBD. The rates for each council are compared in the Melbourne council rates study.
If you take the train, the cheapest suburbs move
A yearly myki Pass costs $2,223 whichever suburb you live in, so on public transport the commute stops separating suburbs. Swap the drive for the pass and Melbourne's spread of running costs falls to $2,421, from $6,300 to $8,721. The cheapest suburbs become the ones with the lowest rates and insurance, led by 5 suburbs in Greater Dandenong City Council at $6,300.
| Suburb | Council | From CBD | With myki Pass | Driving |
|---|---|---|---|---|
| Lyndhurst | Greater Dandenong | 36.2 km | $6,300 | $11,003 |
| Noble Park | Greater Dandenong | 25.3 km | $6,300 | $10,128 |
| Noble Park North | Greater Dandenong | 25 km | $6,300 | $10,079 |
| Springvale | Greater Dandenong | 22.8 km | $6,300 | $9,770 |
| Springvale South | Greater Dandenong | 24 km | $6,300 | $9,943 |
| Carlton | Melbourne | 1.6 km | $6,394 | $4,722 |
| East Melbourne | Melbourne | 1.7 km | $6,394 | $4,760 |
| Parkville | Melbourne | 3.2 km | $6,394 | $5,235 |
| Keilor Park | Brimbank | 14.4 km | $6,625 | $8,533 |
| Boronia | Knox | 29 km | $6,642 | $10,881 |
Driving beats the pass only in the 44 suburbs within about 7 km of the CBD. Whether the pass works for you depends on a station or tram stop near home and a job near a line. The Melbourne Suburb Finder ranks suburbs on public transport using PTV's morning-peak timetables.
The cheapest suburb in every Melbourne council
If you already know the area you want, this is the lowest running cost in each of the 31 councils. Suburbs far out in the larger councils can look cheap because the model assumes fewer trips into the city from further away, so check the distance column.
| Council | Cheapest suburb | From CBD | Running cost |
|---|---|---|---|
| Melbourne City Council | Carlton | 1.6 km | $4,722 |
| Port Phillip City Council | South Melbourne | 2.3 km | $5,798 |
| Yarra City Council | Fitzroy | 2.1 km | $5,802 |
| Stonnington City Council | South Yarra | 3.7 km | $6,279 |
| Moonee Valley City Council | Travancore | 4.2 km | $6,826 |
| Darebin City Council | Northcote | 5.7 km | $6,882 |
| Merri-bek City Council | Brunswick East | 5.2 km | $7,045 |
| Hobsons Bay City Council | Spotswood | 7 km | $7,168 |
| Maribyrnong City Council | Seddon | 6.3 km | $7,411 |
| Glen Eira City Council | Elsternwick | 9.1 km | $7,541 |
| Boroondara City Council | Hawthorn | 6.5 km | $7,928 |
| Cardinia Shire Council | Tonimbuk | 70.3 km | $7,967 |
| Banyule City Council | Bellfield (Greater Melbourne) | 9.5 km | $8,105 |
| Brimbank City Council | Brooklyn | 10.7 km | $8,229 |
| Mornington Peninsula Shire Council | Flinders | 71.5 km | $8,249 |
| Yarra Ranges Shire Council | Big Pats Creek | 70.2 km | $8,617 |
| Whitehorse City Council | Mont Albert | 12.7 km | $8,683 |
| Bayside City Council | Brighton | 10.9 km | $8,816 |
| Monash City Council | Hughesdale | 14 km | $8,889 |
| Hume City Council | Tullamarine | 14.3 km | $8,940 |
| Manningham City Council | Doncaster | 14.4 km | $9,229 |
| Whittlesea City Council | Bundoora | 14.8 km | $9,327 |
| Greater Dandenong City Council | Springvale | 22.8 km | $9,770 |
| Kingston City Council | Moorabbin | 16.5 km | $9,810 |
| Melton City Council | Burnside | 20 km | $10,097 |
| Wyndham City Council | Williams Landing | 20 km | $10,154 |
| Knox City Council | Wantirna | 23.4 km | $10,558 |
| Maroondah City Council | Ringwood | 23.3 km | $10,828 |
| Casey City Council | Tooradin | 56.6 km | $11,303 |
| Nillumbik Shire Council | Eltham North | 20.4 km | $11,404 |
| Frankston City Council | Sandhurst | 36.8 km | $11,726 |
Cheapest Melbourne suburbs by distance from the city
The three cheapest at each distance. Beyond 50 km, the commute model assumes a return trip to the CBD about once a fortnight, which suits someone who works locally rather than a daily city commuter.
| Distance | Suburbs | Three cheapest |
|---|---|---|
| Within 10 km of the CBD | 80 | Carlton $4,722, East Melbourne $4,760, Melbourne $5,212 |
| 10 km to 20 km | 127 | Caulfield East $7,844, Glen Huntly $8,069, Gardenvale $8,191 |
| 20 km to 30 km | 90 | Springvale $9,770, Springvale South $9,943, Noble Park North $10,079 |
| 30 km to 50 km | 132 | Lyndhurst $11,003, Bangholme $11,232, Cockatoo $11,300 |
| Beyond 50 km | 96 | Tonimbuk $7,967, Lang Lang East $8,104, Vervale $8,151 |
The most expensive Melbourne suburbs to run
For contrast, the ten dearest of the 525. Matlock, 115.7 km out in the Yarra Ranges, tops the list because its drive reaches the $18,200 a year ceiling the model applies at 100 km. The other nine sit 30.4 to 47.2 km out, 6 in Nillumbik and 3 in Yarra Ranges, where the commute is long and rates are among Melbourne's highest.
| Suburb | Council | From CBD | Drive | Total |
|---|---|---|---|---|
| Matlock | Yarra Ranges | 115.7 km | $18,200 | $23,205 |
| Strathewen | Nillumbik | 40.9 km | $6,985 | $13,183 |
| St Andrews | Nillumbik | 38.5 km | $6,979 | $13,177 |
| Seville East | Yarra Ranges | 47.2 km | $6,762 | $13,112 |
| Smiths Gully | Nillumbik | 35.3 km | $6,893 | $13,091 |
| Bend of Islands | Nillumbik | 30.4 km | $6,586 | $13,084 |
| Christmas Hills | Nillumbik | 34.8 km | $6,873 | $13,071 |
| Yering | Yarra Ranges | 38.4 km | $6,978 | $12,978 |
| Cottles Bridge | Nillumbik | 32.2 km | $6,724 | $12,922 |
| Coldstream | Yarra Ranges | 35.5 km | $6,900 | $12,900 |
How the running cost is calculated
Council rates. Each council's average residential rate for 2026-27 from its adopted budget: residential rate revenue divided by residential assessments, plus the municipal charge where the council sets one. Every suburb in a council carries the same figure, and a particular property's rates depend on its capital improved value. Waste charges and the state Emergency Services and Volunteers Fund levy, both on the rates notice, are not included.
Water. Water and sewerage from the suburb's water corporation, 2026-27 tariffs.
Commute. The drive to the Melbourne CBD at the ATO 2026-27 rate of 91c a kilometre, with trips each week tapering with distance (from four a week close in to one a fortnight beyond 70 km) and capped at $18,200 a year. It is a modelled CBD commute, not your own. The public transport figure is a yearly myki Pass, Zone 1+2, at the 2026 standard full fare.
Insurance. Building insurance for a house is an estimate, from the suburb's flood and fire ratings scaled by the Actuaries Institute's 2024 Victoria to New South Wales premium ratio. It is labelled an estimate wherever it appears.
Excluded. 10 localities that are airports, a naval base, a treatment plant or industrial precincts rather than places people live. Mortgage or rent, electricity and day-to-day spending are left out because they belong to the household, not the address. Victorian council rates use a different basis from Queensland and New South Wales, so compare these figures within Melbourne, not against Sydney or Brisbane.
Frequently asked questions
What is the cheapest suburb to live in Melbourne?
On annual running cost, Carlton at $4,722 a year for a house in 2026-27, then East Melbourne at $4,760 and Melbourne at $5,212. All 25 of the cheapest are within 5 km of the CBD, because the drive to work is the largest cost a suburb adds and it is smallest there. This ranks what a home costs to run, not what it costs to buy or rent.
What are the cheapest outer suburbs of Melbourne to run?
Between 20 and 30 km out the cheapest are Springvale ($9,770), Springvale South ($9,943) and Noble Park North ($10,079). Between 30 and 50 km, Lyndhurst ($11,003), Bangholme ($11,232) and Cockatoo ($11,300). Further out the model assumes fewer trips to the CBD each week, so those totals suit a household that rarely drives into the city.
Which Melbourne council has the lowest rates?
Greater Dandenong City Council, with an average residential rate of $1,063 for 2026-27. Nillumbik Shire Council is highest at $2,810. Across Melbourne, rates move by $1,747 from lowest to highest, against $17,686 for the modelled drive to the CBD, so rates rarely decide which suburb is cheapest to run. Every council is ranked in the Melbourne council rates study.
Is it cheaper to live further out of Melbourne?
Not to run a house, if you drive to the CBD. The median running cost within 10 km of the CBD is $7,261 a year, and between 30 and 50 km it is $12,036. The median drive to the CBD is $2,054 a year within 10 km and $6,880 between 30 and 50 km, so the commute makes up most of the gap. On a yearly myki Pass the gap closes, because the pass costs the same $2,223 from every suburb.
What are the cheapest Melbourne suburbs if I take public transport?
With a yearly myki Pass at $2,223, the cheapest are Lyndhurst, Noble Park, Noble Park North and Springvale, at $6,300 a year, because Greater Dandenong City Council has the lowest average residential rate in Melbourne. The spread across all 525 suburbs falls to $2,421. Driving is cheaper than the pass only in the 44 suburbs within about 7 km of the CBD.
What about running a unit in Melbourne?
For a unit, adding estimated owners corporation fees and unit insurance, the cheapest are Carlton ($7,172), East Melbourne ($7,210) and Southbank ($7,300). Owners corporation fees are estimates and vary widely by building, so check the actual levies for any unit you consider.
Does this include house prices or rent?
No. SuburbCost publishes no property prices, rents, medians or growth figures. The ranking covers the recurring costs of holding a home in a suburb: council rates, water, the commute and insurance. Mortgage or rent, electricity and household spending are left out because they depend on the household rather than the address.
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