Melbourne has long been celebrated for its world-class liveability, diverse cultural scene, and thriving food and arts culture. Buying property in Melbourne has also become more affordable when compared to other capitals like Sydney, Brisbane, Adelaide and Perth which have seen runaway growth since the onset of the pandemic. 

From students and young professionals to families and retirees, the city offers a wide range of vibrant neighbourhoods that combine lifestyle appeal with access to great amenities, parks, and public transport.

We’ve explored a number of reliable reports on liveability and affordability, including PRD’s Melbourne Metro Property Guide, TimeOut, and HomeTruth, to help you uncover Melbourne’s most liveable suburbs for 2025. These suburbs have been selected for their balance of affordability, lifestyle appeal, and investment potential.

What's the criteria for the best suburbs to live in Melbourne?

The Place Score liveability census found residents valued multiple factors when scoring the best places to live in Melbourne, including:  

• Access to local amenities including shops, cafés and health services
• Connectivity
• Elements of the natural environment including trees, topography and views
• Walkability

 With these in mind, let’s explore the best areas to live in Melbourne.

Best Inner-City suburbs to live in Melbourne

Melbourne’s inner city is renowned for its cultural hotspots, proximity to the CBD, and access to premium dining, shopping, and entertainment venues. While affordability can be a challenge, some suburbs balance location with value and liveability.

South Melbourne continues to be a standout, offering a perfect blend of history and modern living. It’s located just 2 km from the CBD and features the iconic South Melbourne Market, along with easy tram access into the city. Median house prices sit around $1.5 million, reflecting its desirability.

Carlton is another prime pick, with its famous Lygon Street dining scene and proximity to Melbourne University making it popular with both students and professionals. The median house price here is approximately $1.4 million, while units average around $400,000, offering a more affordable entry point for inner-city living.

Fitzroy remains one of the most vibrant suburbs in Melbourne, known for its eclectic mix of cafes, street art, and music venues. Houses here carry a median of $1.6 million, while apartments average around $730,000.

For a more affordable alternative, Kensington offers a median house price of $1.1 million while maintaining a strong village atmosphere and leafy streets just minutes from the CBD.

Other notable mentions include Abbotsford and Collingwood, both of which offer a mix of historic homes and modern apartments with easy access to the CBD and public transport.

Best Eastern suburbs to live in Melbourne

Melbourne’s eastern suburbs are known for their family-friendly atmosphere, excellent schools, and leafy streetscapes, making them highly sought-after for those seeking a quieter lifestyle with great amenities.

Balwyn North has long been a favourite for families, with its highly-rated public and private schools, including Balwyn High School. The median house price here sits around $2.3 million, but the suburb’s school zones and parks ensure continued demand.

Box Hill has become a hub of multiculturalism with a thriving Asian food scene and excellent public transport, including a train line direct to the CBD. Its median house price is around $1.45 million, while units are more affordable, averaging $550,000.

Blackburn is another strong choice, offering a balance of suburban charm and proximity to nature. Its median house price of $1.4 million reflects its status as a premium family suburb with strong demand.

For a more budget-friendly option, Ringwood offers a median house price of approximately $1.15 million while still being home to Eastland Shopping Centre and quality schools.

Other highlights include Templestowe and Glen Waverley, both of which provide excellent green spaces and strong school zones, attracting families seeking lifestyle convenience.

Best Western suburbs to live in Melbourne

Melbourne’s western suburbs offer some of the city’s most affordable housing while rapidly transforming into lifestyle hubs with improved infrastructure and community development.

Yarraville, located just 6 km from the CBD, continues to shine thanks to its trendy village atmosphere, historic Sun Theatre, and cafe culture. Median house prices sit around $1.15 million, while units average $600,000.

Footscray offers a rich multicultural food scene and proximity to the city, with a median house price of approximately $1 million and units around $450,000, making it an affordable option for young professionals.

Altona delivers coastal charm with a median house price of $1.1 million, ideal for those seeking a beachside lifestyle without sacrificing proximity to the CBD.

For affordability, Werribee and Hoppers Crossing remain strong contenders with house prices sitting closer to $700,000, while still offering schools, parks, and train connectivity to the city.

Other great options include Newport and Sunshine, both of which are experiencing ongoing gentrification while remaining accessible to the city.

Best Northern suburbs to live in Melbourne

The northern suburbs offer a diverse blend of culture, lifestyle, and affordability, with many suburbs seeing increasing demand as gentrification progresses.

Brunswick is a cultural gem known for its music venues, cafes, and creative scene. House prices sit around $1.25 million, while units are far more accessible at $550,000.

Coburg has seen consistent growth thanks to its blend of heritage homes and new developments. Median house prices are around $1.15 million, while units average $580,000.

Preston offers a great mix of affordability and lifestyle with its vibrant market and proximity to parks. The median house price sits at approximately $1.1 million, while units average $580,000.

For a more affordable alternative, Reservoir provides a median house price of around $900,000 and remains popular for first-home buyers seeking space.

Other suburbs worth considering include Northcote and Thornbury, both of which provide great access to public transport, parks, and cafes, making them ideal for families and young professionals.

Best Southern suburbs to live in Melbourne

Melbourne’s southern suburbs combine beachside living with excellent schools and a relaxed lifestyle, making them popular with families and professionals alike.

Brighton remains a premium choice with its beachside mansions and proximity to elite schools, though its median house price is steep at just under $3 million.

Elwood offers a more affordable yet still premium coastal option, with a median house price of $2 million and a thriving cafe scene.

Mentone has become increasingly popular for families due to its quality schools and beachside appeal, with a more accessible median house price of $1.3 million.

For more budget-conscious buyers, Cheltenham offers a median house price of $1.2 million and great public transport links.

Other options include Sandringham and Mordialloc, both of which offer coastal charm with a mix of modern and period homes.