Melbourne is a vibrant city of diverse neighborhoods, each offering a unique experience for travelers. To help you decide where to base yourself, we’ve highlighted Melbourne’s best areas to stay – from the bustling city center to trendy inner suburbs. Each area below includes who it’s best suited for, the prime spots to stay, places to avoid, pros and cons, and typical accommodation prices in both Australian and US dollars.

Melbourne CBD (City Centre)

Melbourne’s Central Business District (CBD) is the heart of the city and the most convenient base for first-time visitors. Here you’ll find historic arcades and iconic laneways brimming with street art, cafes, and boutiques. Major attractions like Federation Square, Flinders Street Station, and the free City Circle tram are at your doorstep. The CBD offers the widest range of hotels from budget hostels to luxury high-rises, all with unparalleled access to public transport and dining options.

• Best Suited For: First-time visitors, sightseers, business travelers, shoppers, night owls.
• Best Areas to Stay In: The central grid bounded by Flinders St, Spring St, La Trobe St, and Elizabeth St (close to Federation Square and Bourke Street Mall). Staying near Flinders Street Station or along Collins Street ensures easy transit and plenty of restaurants. The east end (“Paris End” of Collins/Spring Streets) is elegant and near theatres and parks.
• Areas to Avoid Staying In: The far western end of the CBD around Spencer Street, which is quieter at night and a bit away from the main attractions. Also, King Street’s nightclub strip can be rowdy after dark – avoid that immediate vicinity if you prefer peace at night.
• Pros: Unbeatable central location with easy access to attractions and transport; huge variety of restaurants, bars, and shops; vibrant laneway culture; many hotel options for all budgets.
• Cons: Busy and noisy 24/7; higher accommodation costs than outer areas; parking is expensive; more of a “concrete jungle” feel with less green space.
• Average Prices (Year-round):
  
  • Budget: ~A$80 (US$55) per night
  • Mid-range: ~A$180 (US$125) per night
  • Luxury: ~A$300 (US$210) per night

Southbank

Just across the Yarra River from the CBD, Southbank offers a modern, upscale atmosphere focused on entertainment and leisure. This riverside precinct is home to the Crown Casino complex, the Arts Centre, and the National Gallery of Victoria, making it ideal for culture and nightlife. Although it’s only a short walk over the bridge to downtown, Southbank feels like its own ritzy enclave with sleek high-rises and riverfront promenades. You can enjoy stunning skyline views and dine at world-class restaurants along the water.

• Best Suited For: Luxury travelers, couples, art and theater lovers, nightlife enthusiasts, first-time visitors who want a slightly quieter base still near the city.
• Best Areas to Stay In: Along Southbank Promenade by the Yarra River (for views and restaurants) and around Southgate complex or Arts Centre (easy access to galleries and theatres). Staying near Queensbridge Street keeps you close to pedestrian bridges into the CBD.
• Areas to Avoid Staying In: The far south/west end of Southbank near the freeway or convention centre can feel isolated. Avoid lodging too far from the Yarra River strip, as areas deeper in Southbank (toward City Road or Dorcas Street) lack the lively riverside ambiance.
• Pros: Modern and safe area; many high-end hotels with views; riverside dining and cafes; short walk or tram to CBD; adjacent to arts and cultural venues.
• Cons: Fewer budget options (area is geared toward upscale accommodations); can feel a bit commercial; nightlife is mostly casino-centric; less of a “neighborhood” vibe after offices close.
• Average Prices (Year-round):
  
  • Budget: ~A$120 (US$85) per night (limited budget hotels)
  • Mid-range: ~A$200 (US$140) per night
  • Luxury: ~A$350 (US$245) per night

Docklands

Docklands is a waterfront precinct just west of the city center, known for its modern skyscrapers, marinas, and public art. Once an old port area, Docklands has been revitalized into a district of high-rise apartments, offices, and hotels. It offers a quieter stay with harbour views and open spaces like Docklands Park and the Melbourne Star observation wheel. With plenty of serviced apartments, Docklands is particularly popular for families and longer stays, providing a self-contained feel while still being a short tram ride from the CBD.

• Best Suited For: Families and groups (spacious apartments), business travelers attending events at Marvel Stadium or the Convention Centre, travelers who want a modern, quieter atmosphere.
• Best Areas to Stay In: NewQuay and Victoria Harbour precincts (close to restaurants on the water and tram stops into the city). Accommodations near Marvel Stadium are convenient for events and still near dining at Harbour Esplanade.
• Areas to Avoid Staying In: Avoid properties on the outer fringe of Docklands far from tram lines, as these can feel isolated (e.g. west of Marvel Stadium toward the Bolte Bridge). Also note some parts are still under development – staying in the heart of Docklands (around Harbour Esplanade) is more ideal than the fringe.
• Pros: Contemporary apartments with full amenities (many with kitchens); scenic waterfront views; quieter than the CBD and Southbank; good tram connections to city (free tram zone extends into Docklands); often better value for large groups.
• Cons: Can feel a bit sterile or lacking nightlife; fewer cultural attractions in walking distance; area can be very quiet at night; limited budget accommodation (mostly mid-range and up).
• Average Prices (Year-round):
  
  • Budget: ~A$130 (US$90) per night (limited)
  • Mid-range: ~A$200 (US$140) per night
  • Luxury: ~A$350 (US$245) per night

Fitzroy & Collingwood

Fitzroy (and its neighboring Collingwood) is Melbourne’s bohemian quarter, famous for its street art, live music, and hip café scene. These adjacent inner-north suburbs showcase Melbourne’s artsy, hipster side with converted warehouses, vintage shops, and galleries lining the streets. Expect a mix of trendy bars, craft breweries, vegetarian eateries, and eclectic boutiques. Fitzroy’s Brunswick Street and Collingwood’s Smith Street are the main drags, offering a youthful, alternative vibe that’s perfect for travelers looking to experience local culture and nightlife beyond the touristy areas.

• Best Suited For: Young travelers and backpackers, foodies (excellent cafes and global eateries), art and music lovers, hip shoppers, anyone wanting to “live like a local” in a creative neighborhood.
• Best Areas to Stay In: Around Brunswick Street in Fitzroy for endless cafes, bars and street art (central to the action), or near Gertrude Street for boutique shopping and galleries. In Collingwood, look near Smith Street or Gertrude/Johnston Streets border for a blend of both suburbs and easy tram access to the city.
• Areas to Avoid Staying In: The far north of Fitzroy toward Alexandra Parade is more residential and removed from the buzz. Also, parts of Collingwood east of Hoddle Street can feel industrial and less walkable. Overall, avoid isolated pockets away from the main streets – stick to accommodations near Brunswick or Smith Street for safety and convenience.
• Pros: Vibrant creative atmosphere (street art and colorful shops at every turn); fantastic dining and nightlife (from cheap eats to chic bars); close to downtown (just 2–3 km, with frequent trams); more affordable lodging on average, including many apartments and a few hostels.
• Cons: Limited traditional hotels (more hostels, guesthouses, and Airbnbs – hotels can be scarce); area can be noisy on weekend nights; a bit gritty in parts (which is part of the charm, but may not suit everyone); street parking is tough.
• Average Prices (Year-round):
  
  • Budget: ~A$70 (US$50) per night
  • Mid-range: ~A$150 (US$105) per night
  • Luxury: ~A$250 (US$175) per night (few high-end hotels, mostly upscale apartments)

St Kilda

St Kilda is Melbourne’s most famous beachside suburb, located 6 km south of the city. It offers a laid-back coastal vibe by day and a buzzing party scene by night. Travelers come for the palm-lined foreshore, the historic St Kilda Pier (where you might spot little penguins at dusk), and the thrill of Luna Park, a vintage beachfront amusement park with its iconic laughing-face entrance. St Kilda has a unique mix of old-school glamor and grunge – luxurious apartments and trendy brunch spots share streets with backpacker hostels and late-night pubs. It’s a fun, slightly edgy area with plenty to do, especially for those who love sun, sand, and nightlife.

• Best Suited For: Backpackers and budget travelers, beach lovers, nightlife seekers, young couples or friends, festival-goers (St Kilda Festival, etc.), anyone who enjoys an eclectic neighborhood.
• Best Areas to Stay In: Near Acland Street for its famous cake shops, cafes, and bars (close to the beach and pier). Fitzroy Street is another popular strip with restaurants and clubs, and staying near the junction of Fitzroy St and The Esplanade puts you by the beach and tram stops. The area around St Kilda Botanical Gardens is quieter but still walking distance to attractions.
• Areas to Avoid Staying In: Some backstreets can be a bit run-down – for example, Grey Street and lanes around it have historically been known for adult venues and a rougher scene at night. It’s best to stay closer to the main streets and beach. Also, areas farther inland (beyond Inkerman St) lose the seaside appeal.
• Pros: Only beach suburb near the city with a lively foreshore and pier; lots of budget accommodations and hostels; dynamic nightlife and live music; great eateries (from cheap bites to upscale); fun attractions like Luna Park and weekend markets; well-connected by tram (20–30 min to CBD).
• Cons: Not as polished as downtown (a bit “rough around the edges” in parts); can feel touristy and crowded in peak season; area is split between upscale and seedy in places, which some travelers might not like; about a 30-minute tram ride to city attractions.
• Average Prices (Year-round):
  
  • Budget: ~A$60 (US$40) per night
  • Mid-range: ~A$150 (US$105) per night
  • Luxury: ~A$250 (US$175) per night

Carlton

Carlton is a genteel inner-city neighborhood directly north of the CBD, renowned for its leafy streets, historic terraces, and fantastic food culture. Often dubbed Melbourne’s “Little Italy,” Carlton’s Lygon Street is lined with countless Italian restaurants, gelaterias, and espresso bars – some of the best Italian dining you’ll find outside of Italy. Beyond the pasta and pizza, Carlton offers lush green space at Carlton Gardens (home to the Royal Exhibition Building and Melbourne Museum) and a rich cultural scene with theaters and cinemas. It’s an excellent area for travelers seeking a quieter stay without sacrificing proximity to city attractions.

• Best Suited For: Foodies (especially Italian cuisine lovers), culture vultures, museum-goers, families and seniors who want a calm area, anyone attending events at Melbourne Uni or near the hospitals.
• Best Areas to Stay In: Around Lygon Street in southern Carlton (between Queensberry and Elgin Streets) to be near the heart of the dining strip. Pelham Street/Rathdowne Street area is great for access to Carlton Gardens and the museum. Also, anywhere close to Queen Victoria Market on the western edge offers easy food shopping and is walkable to the city.
• Areas to Avoid Staying In: Carlton is generally safe and pleasant. Just note that staying too far north (past Elgin Street) edges into residential Brunswick/Parkville, which is quieter but less convenient for sightseeing. There’s no particular “bad” part of Carlton, but the immediate vicinity north of Melbourne Uni becomes more isolated for travelers.
• Pros: Charming, tree-lined streets with Victorian architecture; incredible array of restaurants and cafes (especially Italian); close to major attractions (museum, historic Exhibition Building) and the CBD (10–15 minute walk); more peaceful at night than the CBD; lovely parks and cultural venues.
• Cons: Nightlife is quieter (more restaurants than bars/clubs); limited hotel options (fewer large hotels, more boutique inns or student accommodations); can get crowded on Lygon Street during dinner rush; street parking can be difficult due to resident permits.
• Average Prices (Year-round):
  
  • Budget: ~A$80 (US$55) per night
  • Mid-range: ~A$150 (US$105) per night
  • Luxury: ~A$250 (US$175) per night (limited luxury hotels in this area)

South Yarra & Prahran

South Yarra (and neighboring Prahran) is an upscale inner-south area known for fashion, food, and nightlife. It’s one of Melbourne’s most stylish districts – long the stomping ground of the local elite – yet warmly welcoming to visitors seeking a trendy base. The centerpiece is Chapel Street, a vibrant strip running through South Yarra into Prahran, dotted with designer boutiques, high-end shops, cafes, and late-night clubs. By day, indulge in brunch at chic cafes or browse Prahran Market for gourmet treats; by night, enjoy rooftop bars and clubs. Despite its posh reputation, South Yarra also features lovely green pockets (the Royal Botanic Gardens are nearby) and excellent transport links from South Yarra train station.

• Best Suited For: Shoppers and fashionistas, nightlife lovers, young couples, food enthusiasts (great brunch and dining scene), anyone wanting a glamorous atmosphere with easy city access.
• Best Areas to Stay In: Close to Chapel Street (between Toorak Road and High Street) to be near the shopping and nightlife action. The Prahran end (around High St/Greville St) has cool boutique hotels and bars. Anywhere near South Yarra Station or Toorak Road is convenient for transport and eateries.
• Areas to Avoid Staying In: Try not to stay too far south of High Street (the Windsor end of Chapel St) as it gets further from the train and main buzz. Also, avoid lodging on extremely busy sections of Chapel Street if you’re sensitive to noise at night – instead, opt for a side street just off Chapel. Otherwise, this area is very safe; just use normal city caution at night around nightclub strips.
• Pros: Trendy and upscale vibe; top-notch shopping and dining (boutiques, Prahran Market); vibrant nightlife (some of Melbourne’s best bars and clubs on Chapel Street); well-connected by train (only two stops to Flinders St) and trams; also near beautiful Botanic Gardens and the Yarra River trails.
• Cons: Accommodation can be pricey (area is in high demand); limited budget options (few hostels here); traffic on Chapel St can be heavy; the scene might feel too upscale or “scene-y” for those seeking a modest or quiet environment.
• Average Prices (Year-round):
  
  • Budget: ~A$100 (US$70) per night
  • Mid-range: ~A$180 (US$125) per night
  • Luxury: ~A$300 (US$210) per night

Richmond

Richmond is a large inner-city suburb east of the center (about 3–5 km out) that offers a bit of everything: major sports venues, multicultural dining, and live music. It’s a top choice for sports fans – the iconic Melbourne Cricket Ground (MCG, for cricket and Aussie Rules football) sits on Richmond’s edge, as do Melbourne Park’s tennis arenas. Richmond’s character varies from north to south. The northern strip, Victoria Street (Little Saigon), is famous for authentic Vietnamese food and Asian grocery markets, though it’s a bit rough around the edges and not the prettiest spot to stay. In contrast, the southern end around Swan Street and Bridge Road is trendier, filled with gastropubs, craft breweries, and the beloved Corner Hotel rock music venue. Richmond’s diversity and close proximity to downtown make it a compelling area for many travelers.

• Best Suited For: Sports enthusiasts (close to MCG, Rod Laver Arena), concert-goers and music fans, budget travelers who want a local vibe, foodies (especially Asian cuisine lovers), those who want a mix of local culture and easy city access.
• Best Areas to Stay In: Swan Street or Bridge Road precincts in the southern part of Richmond – these areas are lively, with cafes, shops, and tram/train access (Richmond Station) to the city. Staying near Church Street (where Richmond meets South Yarra) offers a blend of upscale and hip. Also consider the Bridge Road area near the Epworth Hospital for a central location in Richmond.
• Areas to Avoid Staying In: It’s best not to stay right on Victoria Street in the north, as that area, while great for a meal, can feel gritty and has less accommodation choice. Also, some pockets near the industrial eastern end or around the railway yards aren’t convenient. Stick to lodging in central/south Richmond for the best experience.
• Pros: Authentic local feel with diverse communities; amazing food options (Vietnamese on Victoria St, Greek and modern Australian on Swan St); heaven for sports fans (walk to games at the MCG or Melbourne Park); vibrant live music and pub scene (e.g. Corner Hotel); multiple tram lines and a major train station make transport easy; generally more affordable accommodations than CBD/South Yarra.
• Cons: The area is spread out – what’s convenient for food (north) isn’t for nightlife (south), so you may travel within Richmond; Victoria Street area can be a bit untidy and feel unsafe late at night; limited hotel selection (more small hotels or apartments); street parking can be challenging on game days or concert nights.
• Average Prices (Year-round):
  
  • Budget: ~A$90 (US$65) per night
  • Mid-range: ~A$160 (US$110) per night
  • Luxury: ~A$250 (US$175) per night (few true luxury hotels, mostly upscale boutiques)

Brunswick

Brunswick lies north of the city (about 5–6 km out) and is an off-beat choice that offers a fantastically local experience. This multicultural neighborhood has evolved through waves of immigration – Italian, Greek, Middle Eastern – giving it a diverse food scene and a rich community feel. Sydney Road, Brunswick’s main artery, is a long stretch of ethnic eateries, old pubs turned live-music venues, quirky bookshops and vintage stores. The area has a youthful energy, thanks to students and artists, and a reputation for being Melbourne’s indie music hub. Staying in Brunswick means discovering hidden bars, enjoying cheap and delicious eats, and mingling with locals in beer gardens or artist markets – all while being a quick tram or train ride from the city.

• Best Suited For: Travelers who want to “live like a local” in a non-touristy area, budget travelers and backpackers, music and arts lovers, students and younger travelers, anyone looking for multicultural cuisine and a casual, alternative vibe.
• Best Areas to Stay In: Along Sydney Road (between Brunswick Road and Albion Street) to be in the heart of the action – near cafes, bars, and music venues. The streets around Barkly Square shopping center (Sydney Rd & Barkly St) are convenient and have eateries and supermarkets. Also, Brunswick East (around Lygon St & Glenlyon Rd) is a hip pocket with cool bars and is closer to tram route 1 to the city.
• Areas to Avoid Staying In: Brunswick is generally safe, but it is expansive. Avoid staying too far north (past Moreland Road) as that becomes Coburg – farther from the city and less vibrant. Also, some blocks right around the train line or industrial areas off Sydney Rd (toward Brunswick West) may be noisy or isolated. Stay near the main shopping/dining strips for the best experience.
• Pros: Authentic community atmosphere with a mix of cultures; some of Melbourne’s best cheap eats (Middle Eastern kebabs, Mediterranean bakeries, Italian pizzerias) all on one street; thriving live music scene and laid-back pubs; accommodation dollars stretch further here than in the inner city; good public transport – two train lines and multiple trams to city.
• Cons: Farther from tourist attractions (20–30 minutes to the city by tram/train); limited traditional hotels (accommodation is mostly hostels, apartments, or a few boutique hotels); area can appear a bit gritty or graffiti-laden; nightlife is lively but skewed to a younger crowd and venues can be spread along a long stretch of road.
• Average Prices (Year-round):
  
  • Budget: ~A$70 (US$50) per night
  • Mid-range: ~A$140 (US$100) per night
  • Luxury: ~A$220 (US$155) per night (very few luxury options; this would be upscale apartments or unique stays)

Comparison of Melbourne’s Best Areas to Stay

Below is a quick comparison of the recommended areas, the type of traveler they suit best, and typical accommodation prices:

Each of these areas offers a distinct Melbourne experience. Whether you prefer the convenience of the city center, the beach vibes of St Kilda, or the hip streets of Fitzroy, you’ll find an area that feels just right for your stay in Melbourne. Enjoy your trip to this dynamic city and its wonderful neighborhoods!