How much do you need to earn to live comfortably in Sydney?

If you’re considering a move to Sydney you’ve probably been wondering about the cost of living in this infamously expensive city. While cost of living is a handy baseline for essential costs, the appeal of the Sydney lifestyle is in its food, entertainment, exploring the attractions, and enjoying all of the experiences.

To make sure you get the most out of your move to Sydney over the long term, and to avoid worrying about the next bill, we’ve put together a realistic budget.

While ‘living comfortably’ is a subjective term, our budget takes a balanced approach to covering the cost of living essentials AND enjoying a good dose of the extras that Sydney has to offer.

In this guide we’ve covered budgets for:

• Living and accommodation costs (including renting and buying options)
• Travel and vehicles expenses
• Food and dining costs

And since budgets are all relative to the amount that you earn, we’ve covered Sydney’s salaries too.

Rent in Sydney

Rents in Sydney have risen substantially over recent years, with the median rental price in Sydney is $770 per week.

Naturally this figure could be higher or lower depending on the property type/size and which area in Sydney you wish to settle in.

Detailed below is a list of Sydney areas along with the median house and unit price for comparison.

NOTE: Each of the areas are directly connected to the CBD by public transport or car. Wider Sydney regions such as the Blue Mountains have not been included as they would not be deemed as centrally located.

Sydney CBD, Upper North Shore and Northern Beaches are more popular areas and so the pricing reflects that. If you’re looking for a more budget-friendly Sydney location, the western suburbs are more affordable.

Weekly budget: $400 to rent a room / $1,250 to live alone

What if I have a mortgage?

In June 2024 the median house price in Sydney currently sits at $1,662,448, according to Domian House report. This average reflects a continuous increase over the last 12 months (a total increase of 7.8%).

To put down a 20% deposit on a property of this value you would need $332,489.

While this figure may feel shocking, the numbers feel somewhat more palatable when broken down into monthly mortgage repayments.

According to the RBA, the average mortgage rate offered by Australian lenders is currently 6.27% for new loans (May 2024 update).

Alternatively, you could explore cheaper suburbs such as Lethrbridge Park in the city’s Greater West region. The current median house price there is $660,000 and the suburb is still only about 40 km from the heart of Sydney.

• Based on this property value you could pay a 20% deposit of $132,000, leaving a loan of $528,000 and weekly repayments of roughly $830.

Weekly cost: $830 - $2,089

Depending on the area you choose and whether you choose to live independently or with flat mates.

How much will I spend on food in Sydney each week?

The amount you can expect to spend on groceries each week will depend on your diet and preferences. However, in the interest of budgeting we’ve outlined below the average weekly costs for a student, single and a family. Here is our guide to save money on groceries in Australia.

• Student: $174
• Single: $199.15
• Family: $511.15

Weekly cost: $128 -$174 per person, per week.

How much will my electricity and household bills be?

The below table details the average prices for utilities in Sydney based on Canstar Blue research.

While these figures detail the average costs for utilities, it’s important to note that your needs will vary depending on the season. Sydney often experiences hot summers and rather cold winters meaning extra power will be required throughout those times to support heating and cooling in the home. Water needs and costs may also change over these times.

Weekly cost: $90 (this caters to roughly $21 extra a week than the average)

Transportation costs in Sydney Australia

Sydney’s CBD is easy to get around by foot or by hopping on or off public transport. However, many Sydney-siders still use a car. If you’re planning on using a car, you will want to carefully consider the costs below.

Sydney is Australia’s most expensive city to run a car.

Among the costs are your car loan (if applicable), fuel and tolls. If you have a loan, it could cost you 56% more every week to run a car than someone without a car loan.

According to the Australian Automobile Association, households in Sydney pay $486 a week, or nearly $25,300 a year on getting around. This takes up 15.5% of the average income.

Weekly cost: $486

Restaurant and bar prices in Sydney

One of the great things about living in Sydney is the abundance of bars, restaurants and cafes. No matter what your preferences, you’re bound to find food and drinks that you love. We’ve looked at bars, restaurants and cafes in the central city to give you an idea around the type of dining and drinking budget you may need to account for.

Weekly cost: $90 - $100

What will I spend on entertainment in the city?

There are countless activities in and around Sydney. With beautiful beaches, nature walks and outdoor experiences there are a lot of options that cost absolutely nothing to enjoy. But, if you also wish to lean into the bustling nightlife and array of events that are on offer, a modest budget is essential.

Bowling, escape rooms and karaoke are among some of the more popular recreational activities on offer.

Bowling will set you back about $25 a game in Sydney while Karaoke is about $100 per hour and escape rooms about $40 each time.

With a number of world class music venues, Sydney is also a hotspot when it comes to concerts and shows. If this is something you want to immerse yourself in you can expect to pay from $130 for a general admission ticket to popular events.

Weekly cost: $100 - $150

How much can I expect to spend to live basically in Sydney?

Sydney is known as the most expensive city to live in in Australia. However there are hacks to bring down costs and live with a little less. As mentioned, house sharing, using public transport over a car and other cost cutting measures will free up your budget a little.

Based on the above budget (low end costs, renting a room) we estimate a single person would spend around $67,288 a year.

If $67k covers the basics, how much do I need to earn to live comfortably?

If you’re spending around $67,000 living in Sydney you’ll need to earn more than this to afford this lifestyle after tax. In saying that, it is possible to spend less than what is outlined in the budget by slashing dining and entertaining costs, living in cheaper suburbs etc.

Single people should aim to earn at least $100,000 to live in Sydney for a more comforable lifestyle. This leaves you with around $75,000 cash in hand after tax which frees you up to invest, go on a few trips away or save for a rainy day.

Having children in Sydney will significantly increase the amount you need to earn in order to live comfortably. Instarem estimates a family of four would need to earn at least $122,004 (combined income) to cover cost of living essentials.

To live more comfortably a family would need to earn $183,000, although this still would not leave a lot to save or big expenditures.

What’s the average salary in Sydney Australia?

The average salary in Sydney Australia is $82,000.

Remember, this is just the average wage, so if you’re working in a high paying industry or profession, you may expect to earn more.

Some of the most popular jobs in Sydney include:

• Operations Manager
• Software Engineer
• Accountant

These roles pay anywhere between $55,000 and $152,000 per year.

The most popular employees in Sydney include:

• Commonwealth Bank of Australia
• Kpmg Consulting
• Woolworths