Where to Stay in Melbourne
Cheapest areas, hostel districts, and budget tips
Our pick for backpackers
Stay in CBD (hostels) / Carlton (guesthouses)
Offers a selection of well-rated hostels and more affordable guesthouse/apartment options compared to other central areas.
Best Neighborhoods for Backpackers
Ranked by relevance for backpackers visiting Melbourne
Carlton
Mid-rangeLeafy and intellectual, characterized by grand Victorian architecture, Melbourne Museum, and a strong Italian influence.
- +Beautiful heritage buildings and parks
- +Excellent and affordable Italian food on Lygon Street
- +Close to major cultural institutions
- -Can be quieter at night compared to CBD or Fitzroy
- -Fewer hotel options, more B&Bs and apartments
Melbourne CBD (Central Business District)
LuxuryThe bustling heart of the city, packed with laneway cafes, high-end shops, and iconic landmarks.
- +Central location with easy access to attractions
- +Vibrant food and nightlife scene
- +Excellent public transport hub
- -Can be noisy and crowded
- -Expensive accommodation
Fitzroy
Mid-rangeBohemian and eclectic, known for its independent boutiques, live music venues, and vibrant street art.
- +Unique atmosphere and independent spirit
- +Excellent dining and bar scene
- +Great for exploring street art
- -Can be noisy on weekends
- -Accommodation options are more limited and often smaller
Southbank
LuxuryModern and cultural, situated along the Yarra River with arts venues, restaurants, and entertainment.
- +Stunning river and city views
- +Close proximity to major arts institutions
- +Wide range of dining and entertainment options
- -Can feel less 'local' and more tourist-oriented
- -Accommodation can be pricey
Daily Budget (Budget)
AUD 120/day
Hidden Gems in Melbourne
Lesser-known spots the locals love
QV Melbourne
Beyond its retail stores, QV is a vibrant hub with a fantastic food court featuring diverse cuisines and often live music. It's a great spot to grab an affordable and delicious lunch away from the main tourist crowds.
Rathdowne Village
FREEWander down this charming street lined with independent boutiques, quirky cafes, and beautiful Victorian terraces. It offers a more relaxed and local shopping and dining experience compared to the city center.
The Provincial Hotel
While it's a hotel, its gastropub downstairs is a local favorite for delicious, hearty meals in a cozy setting. They offer excellent seasonal dishes and a great atmosphere for a relaxed dinner.
2 areas to be cautious about
Read our full safety guide for Melbourne