Australia is known for its sunny skies, stunning beaches, and vibrant culture, but it also comes with a hefty price tag, especially in major cities like Sydney, Melbourne, and Brisbane. However, if you’re considering relocating to Australia in 2025, you don’t have to settle for sky-high rent and living expenses. Australia is home to many affordable cities and towns that offer great value for money while still providing a comfortable lifestyle, rich culture, and proximity to natural wonders.
This article will guide you through the cheapest places to live in Australia in 2025, highlighting regional cities, smaller towns, and up-and-coming areas where living costs are much lower than the big cities. Let’s dive in!
Understanding the Cost of Living in Australia in 2025
Before we explore the most affordable places to live, it’s important to understand what influences the cost of living in Australia. Here are the key factors that will help you compare:
- Housing Costs
Rent and property prices are usually the most significant expenses for anyone living in Australia. Cities like Sydney and Melbourne are notorious for their expensive housing markets. However, the further you venture away from these metropolises, the cheaper housing becomes. - Utilities and Services
While the cost of utilities (electricity, water, internet) remains relatively standard across Australia, smaller towns or regional areas tend to have lower service fees and costs due to less competition and lower demand. - Groceries and Everyday Essentials
Grocery prices can vary depending on location, with rural areas often seeing higher food prices due to transport costs. However, living in a regional city could allow you to save significantly, especially in places with farmer’s markets and local produce. - Transport
Public transport costs are usually lower in regional areas compared to large cities, where extensive networks often come with high ticket prices. Additionally, owning a car can be cheaper in regional towns due to lower parking and fuel prices.
Now, let’s take a closer look at some of the most affordable places to live in Australia in 2025.
Cheapest Places to Live in Australia in 2025
1. Hobart, Tasmania
Hobart, the capital of Tasmania, is a gem for those seeking an affordable yet vibrant lifestyle. With stunning natural beauty, a relaxed pace of life, and a growing arts and food scene, it’s no wonder Hobart has become a popular choice for newcomers.
- Average Rent: Rent for a 1-bedroom apartment in the city center averages around $1,200 per month, with even more affordable options available in the suburbs.
- Living Costs: Groceries, utilities, and dining out are more affordable than in cities like Sydney and Melbourne. Hobart’s food scene has also been growing, and you can find local, fresh produce at reasonable prices.
Hobart offers a balanced lifestyle with easy access to nature, making it ideal for anyone looking for affordability without sacrificing quality of life. Learn more about Hobart’s affordable living.
2. Launceston, Tasmania
Just north of Hobart, Launceston offers similar affordability but with a smaller-town feel. Known for its beautiful parks and proximity to Tasmania’s wine regions, Launceston is a great choice for those who prefer a quieter lifestyle without compromising on amenities.
- Average Rent: You can rent a 1-bedroom apartment in Launceston for around $950 per month, making it one of the most affordable options in Australia.
- Living Costs: Launceston benefits from lower transport and utility costs, and its farmer’s markets offer fresh produce at a fraction of the price you’d find in larger cities.
If you’re after a more serene environment with a tight-knit community, Launceston is one of the cheapest places to live in Australia, with a strong local economy and low unemployment rates.
3. Adelaide, South Australia
Adelaide, the capital of South Australia, offers an affordable alternative to the high costs of Sydney and Melbourne. With a mix of vibrant culture, beautiful parks, and a growing job market, it’s one of Australia’s most underrated cities.
- Average Rent: The average rent for a 1-bedroom apartment in the city center is approximately $1,250 per month, while rental prices in outer suburbs can be as low as $900–$1,100.
- Living Costs: Dining, groceries, and services are more affordable than in the larger cities. Adelaide is also known for its excellent wine and food scene, which offers a lot of bang for your buck.
With its affordable housing and lifestyle perks, Adelaide is the perfect city for those who enjoy city living but want to avoid the hefty price tag. Discover more about Adelaide’s affordable living.
4. Wagga Wagga, New South Wales
Located in regional New South Wales, Wagga Wagga is a popular choice for those looking for a slower pace of life. The town offers affordable housing, a strong sense of community, and proximity to the bustling cities of Sydney and Melbourne.
- Average Rent: You can rent a 1-bedroom apartment for as little as $900 per month in Wagga Wagga. This is a stark contrast to the rent prices in Sydney, where you could expect to pay upwards of $2,500 per month for a similar property.
- Living Costs: Utilities and groceries are more affordable, and because of the region’s agricultural nature, fresh produce is readily available and often cheaper.
For those who want a more affordable lifestyle with a strong community feel, Wagga Wagga is an ideal choice.
5. Ballarat, Victoria
Ballarat is an easy 90-minute drive from Melbourne, making it perfect for those who want to live in a more affordable area while still having access to the big city’s amenities. Known for its gold rush history and Victorian architecture, Ballarat is rich in culture and affordable living.
- Average Rent: A 1-bedroom apartment in the city center costs around $1,200 per month, with suburban rents as low as $1,000.
- Living Costs: Living in Ballarat is cheaper across the board. Utilities, groceries, and entertainment are all more affordable compared to Melbourne.
If you’re looking for a mix of history, culture, and affordability, Ballarat provides great value for money.
6. Coffs Harbour, New South Wales
Coffs Harbour, known for its stunning beaches and laid-back atmosphere, is a popular destination for those looking for a coastal lifestyle without the steep costs of Sydney or Brisbane. With its warm climate and relaxed vibe, it’s an appealing place to live year-round.
- Average Rent: Renting a 1-bedroom apartment in the city center can cost about $1,200 per month, with options in surrounding areas going for as low as $900.
- Living Costs: Coffs Harbour benefits from cheaper groceries, especially in local markets, and its smaller size means lower transportation and parking costs.
Coffs Harbour is perfect for anyone who loves the beach and wants a slower pace of life while keeping living expenses low. Learn more about the cost of living in Coffs Harbour.
7. Mackay, Queensland
Mackay, located in Queensland, is known for its tropical climate, nearby beaches, and thriving sugar industry. With affordable housing and a slower pace of life, Mackay is an attractive option for families and retirees.
- Average Rent: A 1-bedroom apartment in Mackay costs around $1,100 per month, with even lower prices available in suburban areas.
- Living Costs: Utilities and everyday expenses are lower than in the major cities, and you’ll find that local markets and produce are cheaper due to the town’s agricultural focus.
If you love the idea of living near the Great Barrier Reef but don’t want to pay a premium for it, Mackay might be your perfect destination.
Conclusion: Finding the Right Place for Your Budget
Australia offers a range of affordable places to live in 2025, especially if you’re willing to look beyond the big cities. Whether you prefer coastal living, historical towns, or peaceful regional hubs, there are plenty of budget-friendly cities and towns to choose from. By considering factors like rent, utilities, and local amenities, you can find a location that fits your budget and lifestyle.
Are you considering a move to Australia in 2025? Let us know which affordable city or town has caught your eye!
See Also: Why Are People Moving Out of Tasmania?
