🎒Backpackers

Where to Stay in Melbourne

Cheapest areas, hostel districts, and budget tips

🛡️ Safe💰 Budget: AUD 120/day🚶 Very Walkable☀️ Best: Feb, Mar, Dec

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Quick Answer

Stay in CBD (hostels) / Carlton (guesthouses)

Offers a selection of well-rated hostels and more affordable guesthouse/apartment options compared to other central areas.

See full Melbourne neighbourhood guide

Top 3 Areas to Stay in Melbourne

Most affordable areas with the best value accommodation

View of Melbourne's skyline featuring tall skyscrapers and construction cranes under a clear sky.

Bhullar Graphic / Pexels

Carlton

Leafy and intellectual, characterized by grand Victorian architecture, Melbourne Museum, and a strong Italian influence.

Our top picks in Carlton

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Rendezvous Hotel Melbourne$$$

Elegant hotel in a heritage building, offering a classic Melbourne experience.

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The Italian Guest House$$

Charming guesthouse offering a personal touch and located right on Lygon Street.

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Uni Lodge Melbourne$

Student accommodation often available for short stays, offering budget-friendly rooms.

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🛡️ Very safe, a family-friendly n...Mid-rangeculturefamilies

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Colorful graffiti and street art line a laneway in Melbourne, showcasing urban life and creativity.

Nate Biddle / Pexels

Fitzroy

Bohemian and eclectic, known for its independent boutiques, live music venues, and vibrant street art.

Our top picks in Fitzroy

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The Rose St. Artists' Market$$

Not a hotel, but a key cultural spot. Accommodation is mostly apartments or smaller guesthouses.

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Adelphi Hotel$$$

Stylish boutique hotel with a famous rooftop pool overlooking the city.

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The Fitzroy Loft$$

Chic loft apartments offering a local living experience.

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🛡️ Generally safe, but be mindful...Mid-rangeculturenightlife

View Hotels in Fitzroy

Black and white photo of pedestrians passing by a closing store in Melbourne with graffiti art.

Lawrence Lam / Pexels

Melbourne CBD (Central Business District)

The bustling heart of the city, packed with laneway cafes, high-end shops, and iconic landmarks.

Our top picks in Melbourne CBD (Central Business District)

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The Langham Melbourne$$$$

Luxurious riverside hotel with exceptional service and stunning Yarra River views.

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Adina Apartment Hotel Melbourne on Flinders$$$

Spacious apartments with kitchenettes, perfect for longer stays or families.

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Hotel Chadstone Melbourne, MGallery by Sofitel$$$

Directly connected to the luxury Chadstone Shopping Centre, offering a unique retail-focused stay.

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🛡️ Generally very safe during the...Luxuryfirst-timersculture

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Neighbourhood Comparison for Backpackers

Neighbourhood	Budget	Vibe	Best For
#1Carlton	Mid-range	Leafy and intellectual, characterized by grand Victorian architecture, Melbourne Museum, and a strong Italian influence.	culturefamilies
Melbourne CBD (Central Business District)	Luxury	The bustling heart of the city, packed with laneway cafes, high-end shops, and iconic landmarks.	first-timersculture
Fitzroy	Mid-range	Bohemian and eclectic, known for its independent boutiques, live music venues, and vibrant street art.	culturenightlife
Southbank	Luxury	Modern and cultural, situated along the Yarra River with arts venues, restaurants, and entertainment.	couplesculture

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Find budget-friendly hostels in Melbourne

Affordable stays in the best backpacker areas

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Tips for Backpackers in Melbourne

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Book Hostels with Kitchens

Self-catering saves significant money in Melbourne. A hostel with a good kitchen can cut your food budget by half.

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Walk Where Possible

Many city centres are walkable. Save transport money for longer journeys and use your feet for neighbourhood exploring.

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Find Free Activities

Free walking tours, museum free days, parks, and markets are everywhere. Ask hostel staff for the best free experiences.

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Carry a Water Bottle

A refillable bottle saves money and plastic. Many cities have free water fountains; check the local tap water safety first.

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Find free walking tours in Melbourne

Budget-friendly ways to explore

Browse on GetYourGuide

Best Neighborhoods for Backpackers

Ranked by relevance for backpackers visiting Melbourne

Carlton

Mid-range

Leafy and intellectual, characterized by grand Victorian architecture, Melbourne Museum, and a strong Italian influence.

culturefamiliesfoodiesbudget

+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

🏨 Rendezvous Hotel Melbourne 🏨 The Italian Guest House 🏨 Uni Lodge Melbourne

Melbourne CBD (Central Business District)

Luxury

The bustling heart of the city, packed with laneway cafes, high-end shops, and iconic landmarks.

first-timersculturefoodiesnightlife

+Central location with easy access to attractions
+Vibrant food and nightlife scene
+Excellent public transport hub

-Can be noisy and crowded
-Expensive accommodation

🏨 The Langham Melbourne 🏨 Adina Apartment Hotel Melbourne on Flinders 🏨 Hotel Chadstone Melbourne, MGallery by Sofitel

Fitzroy

Mid-range

Bohemian and eclectic, known for its independent boutiques, live music venues, and vibrant street art.

culturenightlifefoodiessolo travelers

+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

🏨 The Rose St. Artists' Market 🏨 Adelphi Hotel 🏨 The Fitzroy Loft

Southbank

Luxury

Modern and cultural, situated along the Yarra River with arts venues, restaurants, and entertainment.

couplesculturefamiliesluxury

+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

🏨 Crown Towers Melbourne 🏨 Pullman Melbourne Albert Park 🏨 Art Series - The Cullen

Daily Budget (Budget)

AUD 120/day

The Nunnery Accommodation dorm bedAUD 45

Vietnamese pho from Pho HungAUD 15

Myki card with daily capAUD 10

Explore Fitzroy Gardens and Cook's Cottage (exterior view is free)AUD 0

Wander through Queen Victoria MarketAUD 0

Coffee and pastry from a local bakeryAUD 10

Enjoy street art in Hosier LaneAUD 0

Dinner at a casual eatery in ChinatownAUD 30

Free walking tour of MelbourneAUD 10

See all budget tiers

Hidden Gems in Melbourne

Lesser-known spots the locals love

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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.

marketMelbourne CBD

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Rathdowne Village

FREE

Wander 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.

streetCarlton North

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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.

foodFitzroy

Our Top 5 Favourite Tours in Melbourne

Hand-picked guided experiences you can book in advance on GetYourGuide.

Guided walking tour through a European city

Melbourne Walking Tour: Highlights & Hidden Gems

Discover Melbourne on foot with a local guide who knows every backstreet and story. You will cover the must-see landmarks and stumble upon places most visitors never find.

View Tour Details

Melbourne Food Tour: Street Food & Local Favourites

Eat your way through Melbourne with a local foodie as your guide. From bustling markets to tucked-away restaurants, taste the dishes the city is truly known for.

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Best of Melbourne: Skip-the-Line Top Attractions

Skip the queues and get straight into Melbourne's top attractions with pre-booked access. An expert guide brings each site to life with stories and context you would not get on your own.

View Tour Details

Day Trip from Melbourne: Scenic Excursion

Escape Melbourne for the day and explore the stunning surroundings. Transport, guide, and itinerary are all sorted so you can relax and enjoy the scenery.

View Tour Details

Local cultural experience and traditions

Melbourne Cultural Experience: History & Traditions

Go beyond sightseeing and connect with Melbourne's living culture. From hands-on workshops to historic neighbourhood walks, this is the side of the city most travellers miss.

View Tour Details

View all tours in Melbourne

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2 areas to be cautious about

Read our full safety guide for Melbourne

Backpackers in Melbourne: FAQ

What is the best area in Melbourne for backpackers?

Carlton is our top pick for backpackers in Melbourne. Leafy and intellectual, characterized by grand Victorian architecture, Melbourne Museum, and a strong Italian influence. It is a mid-range area known for culture, families, foodies.

Is Melbourne safe for backpackers?

Melbourne is rated "safe" overall. The CBD and popular inner suburbs like Fitzroy and Southbank are generally safe at night due to high foot traffic and police presence. Be cautious in less populated laneways or parks after dark. Our neighbourhood guides include area-specific safety advice.

How much does it cost per day in Melbourne for backpackers?

Expect to spend around AUD 120 per day in Melbourne as a backpacker. This covers accommodation, food, transport, and activities at the budget level.

When is the best time for backpackers to visit Melbourne?

The ideal time depends on your priorities. Shoulder seasons (spring and autumn) typically offer the best balance of pleasant weather, lower prices, and fewer crowds. Budget travellers often find the best deals in winter or early spring.

Where are the cheapest hostels in Melbourne?

The most affordable hostels in Melbourne are typically found in Carlton. Budget accommodation options are highlighted in each neighbourhood breakdown above.

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More Melbourne Guides

Full Melbourne guide Areas to avoid Best time to visit More cities in Australia 👩 Solo Female Travellers 💑 Couples 👨‍👩‍👧‍👦 Families 💻 Digital Nomads ✨ Luxury Travellers 🎉 Nightlife Seekers

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