Cheaper rent, brightest minds: Why Melbourne is about to become Australia’s boom city

October 21, 2026 — 11:44am

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Another day, another bleak assessment of the state of Victoria, and its capital, Melbourne.

Since the pandemic, it has been hard to avoid them. Even walking around the city centre has been a reminder of vibrancy lost. For the city hardest hit by the pandemic, the road back is a long one.

This is clearest in the state’s finances. All budgets (save Western Australia’s) are under pressure. But Victoria has gone from a relatively rich state to a relatively poor state, ahead of only Tasmania and South Australia. And with healthcare spending on the rise, infrastructure investment still at record levels, and the threat of a difficult bushfire season ahead, budget pressures aren’t likely to ease any time soon.

But that is not the full story of Melbourne’s fortunes: the city could be on the cusp of an economic renewal.

Melbourne has long held a strong position in the battle of Australian cities when it comes to quality of life. It has consistently ranked as Australia’s most liveable city, and during much of the 2010s as the most liveable in the world. This year it was voted Time Out’s best city........

© The Age