Melbourne Tops Time Out's 2026 Global Best Cities Ranking
Melbourne has been ranked first in Time Out's 2026 global best cities ranking. The city's housing market is significantly cheaper than Sydney's, with median house prices roughly 39% lower.
Population Growth Advantage
Melbourne leads in population growth, adding 105,030 people in 2024-25 compared to Sydney's 75,200. The city's housing construction sector has been strong, with new building approvals nearly 39% higher in 2024-25. Melbourne is projected to become Australia's largest city by the early 2030s or 2040s.
Housing affordability
- Median detached house price in Sydney: $1.79 million; in Melbourne: $1.08 million (as of March 2025, per Domain).
- A couple needs a pre-tax income of about $232,000/year in Sydney to afford a median-priced house, versus $145,000 in Melbourne (per Canstar).
- Rents in Sydney are generally at least 20% higher than in Melbourne.
Population and migration
Greater Melbourne added more residents than Greater Sydney in 2024-25.
- Melbourne attracted about 81,000 overseas migrants; Sydney about 78,000.
- Melbourne's urban area was expanded to include Melton in 2023, boosting its official population.
- Greater Sydney's population is estimated at 5.638 million; Greater Melbourne at 5.435 million (using broader Sydney boundaries).
Economic context
- Victoria has the largest state debt in Australia, projected at $194 billion by 2029-30.
- Victoria's unemployment rate is 4.8%, slightly above NSW's 4.5%.