An Aussie city\u00a0has just topped the world\u2019s best cities list, and the reasons go beyond food and culture \u2014 from where people live to\u00a0how the city continues to grow.\u00a0\u00a0<\/p>\n
Melbourne has been named the world\u2019s best city for 2026 by Time Out, with the global guide pointing to the city\u2019s neighbourhood culture,\u00a0accessible\u00a0transport\u00a0and everyday liveability.\u00a0<\/p>\n
While the ranking highlights food,\u00a0culture\u00a0and major events, it also reflects how Melbourne is evolving as a place to live.\u00a0\u00a0<\/p>\n
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Melbourne topped Time Out’s 50 Best Cities list for 2026. Picture: Getty<\/p>\n
The national housing picture<\/p>\n
Melbourne\u2019s global ranking comes as housing affordability tightens across Australia, with national home prices rising 0.5% in February and values now 9.1% higher than a year ago, according to the latest PropTrack Home Price Index<\/a>.<\/p>\n Melbourne\u2019s median dwelling price sits at $854,000, lower than most other capital cities.<\/p>\n Despite having a smaller population than New South Wales, Victoria has delivered more new homes than any other state in recent years, according to Australian Bureau of Statistics data, helping to ease some supply pressure compared with faster\u2011growing markets.<\/p>\n As the city attracts new residents from interstate and overseas, new homes<\/a> are being delivered in locations that support the lifestyle it\u2019s known for.<\/p>\n Here are three reasons Melbourne deserves its spot at the top of the list \u2014 and how new housing is helping the city keep pace.<\/p>\n 1. The \u2018cool\u2019 factor\u00a0<\/p>\n Melbourne\u2019s appeal has long been driven by neighbourhoods with strong identity, and Fitzroy is one of the clearest examples \u2014 known for its live music venues, independent retailers,\u00a0caf\u00e9s\u00a0and\u00a0close proximity\u00a0to the CBD.\u00a0<\/p>\n The Regent in Fitzroy offers a 315sqm rooftop terrace with barbeque facilities and panoramic views. Picture: realestate.com.au<\/p>\n New apartment developments in the suburb are adding homes within this established inner\u2011city setting, giving more people the opportunity to live close to the culture that defines Melbourne life.\u00a0<\/p>\n Fabbrica<\/a> by Pace Development Group\u00a0is delivering a mix of apartments and townhouses informed by Fitzroy\u2019s manufacturing and industrial heritage.\u00a0\u00a0<\/p>\n The development includes shared rooftop spaces designed for work,\u00a0dining\u00a0and socialising, with interiors by Melbourne studio Winwood McKenzie and architecture by SJB.\u00a0<\/p>\n Nearby, The Regent<\/a> by SMA Projects is rising on the former site of the historic Regent Theatre, drawing on the area\u2019s cultural past through its architectural and interior design.\u00a0\u00a0<\/p>\n Designed by Hayball with interiors by Studio Tate, the development includes shared rooftop facilities, a\u00a0concierge\u00a0and resident amenities.\u00a0\u00a0<\/p>\n 2. Better transport, better connected homes\u00a0<\/p>\n Melbourne\u2019s expanding transport network\u00a0is improving\u00a0where people can comfortably live, supported by draft maps\u00a0identifying\u00a0train and tram activity centres as priority areas for more housing and services.\u00a0\u00a0<\/p>\n The Eighth in South Melbourne is just steps away from the new Anzac Metro Station. Picture: realestate.com.au<\/p>\n The Metro Tunnel, which opened in November 2025, has improved connections between inner\u2011city precincts and major employment hubs. Its new Anzac Station is\u00a0opening up\u00a0parts of South Melbourne, St Kilda Road and the Arts Precinct to apartment developments close to public transport and jobs.\u00a0<\/p>\n The Eighth<\/a>,\u00a0located\u00a0near the Royal Botanic Gardens, is a boutique apartment development designed with a limited number of residences per floor and a strong emphasis on resident amenity.\u00a0\u00a0<\/p>\n The building includes shared wellness and rooftop facilities and sits within walking distance of parkland, cultural venues and public transport connections linking directly into the CBD.\u00a0<\/p>\n Also nearby, First Light<\/a> by DCF Property at Albert Road is a smaller collection of apartments designed by Yoo Studio, with interiors by L\u00e9o\u00a0Terrando.\u00a0\u00a0<\/p>\n The development incorporates high\u2011quality materials, smart building technology and shared amenities, and benefits from close access to\u00a0the new\u00a0Anzac Station.\u00a0\u00a0<\/p>\n 3. Homes designed around lifestyle, not just location\u00a0<\/p>\n As Melbourne grows, the focus\u00a0isn\u2019t\u00a0just on adding homes \u2014\u00a0it\u2019s\u00a0also on how those homes are designed and how they support everyday living over the long term.\u00a0<\/p>\n A render of what the new Fitzroy Gasworks precinct could look like. Picture: Development Victoria<\/p>\n A growing share of Melbourne\u2019s newest housing is being delivered through build\u2011to\u2011rent (BTR) developments, where long\u2011term renting, shared amenities and flexibility are central to the model.\u00a0<\/p>\n Local is one provider with projects across Melbourne, including Southbank, Docklands, South Melbourne, Box\u00a0Hill\u00a0and Kensington.\u00a0\u00a0<\/p>\n Its Kensington development is supported by shared facilities such as workspaces, resident lounges, fitness\u00a0areas\u00a0and outdoor spaces,\u00a0while also\u00a0benefitting\u00a0from strong public transport access close\u00a0to parks,\u00a0caf\u00e9s\u00a0and everyday services.\u00a0<\/p>\n Further north, the BTR operator has been appointed to deliver the third and final parcel at Fitzroy Gasworks<\/a>, a new neighbourhood set to rise on the former gasworks site.\u00a0\u00a0<\/p>\n Local is set to deliver around 360 BTR apartments, including more than 100 affordable dwellings, alongside existing community infrastructure such as the\u00a0Wurun\u00a0Senior Campus and\u00a0Bundha\u00a0Sports Centre.\u00a0<\/p>\n<\/p>\n
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