Savings rate in Sydney — are you on track?
Sydney is a very high cost city. Sydney median rent exceeded A$2,800/month in 2023, the highest in Australia by a wide margin. Sydney's housing crisis means even high-income earners can struggle to save above the national benchmark.
Median rent
A$2,800/mo
Sydney 2023
Typical other costs
A$2,400/mo
excl. housing
Savings benchmark
4–13%
mid-income AUD
Monthly budget snapshot — Sydney
Pre-set for Sydney — adjust to your situation
What a good savings rate looks like in Sydney
Using data from ABS Household Expenditure Survey 2022/23, people at mid-range incomes in Australia typically save between 4–13% of gross income. In a very high cost city like Sydney, housing costs can compress that meaningfully — especially for renters.
Source: ABS Household Expenditure Survey 2022/23. Benchmarks shown for mid-income earners in Australia.
Frequently asked questions — Sydney
What savings rate is considered good in Sydney?+
In Sydney, a savings rate of 8% of gross income is the expected benchmark for mid-income earners in Australia. A rate below 4% is considered a minimum floor — anything less means you are not building meaningful financial resilience. Reaching 19% or above puts you in a strong position relative to others at your income level.
How much does rent cost in Sydney?+
The median rent in Sydney is around A$2,800 per month. Sydney median rent exceeded A$2,800/month in 2023, the highest in Australia by a wide margin. This makes rent one of the biggest factors in your ability to save — especially for renters, who typically face higher housing cost burdens than homeowners with fixed mortgages.
What does a typical monthly budget look like in Sydney?+
A typical budget in Sydney includes approximately A$2,800/month for rent and A$2,400/month for other living expenses, for a combined A$5,200/month in core costs. Sydney's housing crisis means even high-income earners can struggle to save above the national benchmark. Any income above this baseline is what is available for saving or investing.
Can you build wealth while living in Sydney?+
Yes — but it requires a savings rate in the 4–13% range to match the benchmark for Australia. Sydney is a very high cost city, so housing and living costs are significant and require careful budgeting to reach the savings benchmark. Sydney's housing crisis means even high-income earners can struggle to save above the national benchmark.
How is the savings benchmark in Sydney calculated?+
The benchmark is derived from ABS Household Expenditure Survey 2022/23, the official national household expenditure survey for Australia. Savings rates are calculated by income band — so the expected rate adjusts based on what you earn, not a single national average. This makes the benchmark more relevant to your actual financial position in Sydney.
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