Each year, The Economist Intelligence Unit (EIU) releases its global liveability index of the world’s most and least liveable cities, based on five key criteria.

In 2024, two Australian capital cities made the top 10 list (Melbourne, 3rd place, Sydney, 4th), while Adelaide sat just outside in the 13th spot. While liveability is more broadly defined by the Australian government as “the qualities and characteristics of a place that support wellbeing and quality of life,” the EIU judges cities using 5 key frameworks: stability, healthcare, culture and environment, education and infrastructure, with a possible score out of 100. Every city is assigned a rating of relative comfort for over 30 qualitative and quantitative factors, across these five categories, gaining a rating of acceptable, tolerable, uncomfortable, undesirable or intolerable.

In the latest index (2025), Melbourne has dropped one place to 4th, Sydney to 6th, and Adelaide has rejoined the top 10 at 9th.

What hasn’t shifted is the average score for liveability across the 173 cities in the index, which stands at 76.1 out of 100, the same as in 2024. However, scores in the stability category have continued to fall amid geopolitical tensions, civil unrest and widespread housing crises, and are set to plummet further in 2026 thanks to the flow-on effects of the US war in Iran and fuel instability.

Western Europe remains the best-performing region for liveability, having achieved the top scores in four of the five categories and outpaced only by North America for education.

While these lists provide an interesting insight into and conversation around liveability, they aren’t the most effective way to judge, as they tend to compare very large geographies – entire cities or regions – using standardised, top-down metrics.

What they fail to encompass is the nuance of place, the diversity of demographics and socio-economic characteristics, and most importantly, the views and lived experiences of the people who actually live there.

So much of the work we do at Square Holes around liveable cities is measuring the values, experiences, and priorities of residents themselves, so that they can be reflected in the planning and expansion of communities.

The definition of a liveable city in Australia has also evolved over time, from a narrow focus on high-end lifestyle amenities and safety to a holistic, evidence-based approach that prioritises health, equity, sustainability, and connectivity.

Key shifts in this definition include:

From “Picturesque” to “Functional” (Walkability)

Previously, livability was often associated with suburbs that were quiet, community-oriented and green. The current focus, according to the Australian Urban Observatory (using data from the ABS), emphasises walkability and “20-minute neighbourhoods,” where residents can access fresh food, schools, health services, and public transport within a short walk from home.

From “Private Luxury” to “Public Connectivity”

Historically in Australia, high liveability was linked to large, private detached houses. Due to rapid population growth, the definition has shifted towards high-quality public infrastructure, such as accessible public open spaces and parks, easy public transport, and diverse housing options (infill development) rather than just urban sprawl.

Inclusion of Sustainability and Resilience

Livability now explicitly includes environmental sustainability over just green spaces, with a focus on managing urban heat through canopy cover and tree planting, the reduction of air pollution, and resilience against climate change risks like flooding and bushfires. A study conducted in the US that used concept mapping surveys of researchers and practitioners in urban planning, public health, and related fields revealed that environmental sustainability “has emerged as a high-importance element, while racial and economic justice continues to be perceived as the least important and the least feasible element,” when it comes to developing liveable cities.

Focus on Social Cohesion and Equity

There is a growing recognition that liveability is not uniform across cities. The current definition focuses on closing the gap in liveability between affluent inner-city areas and outer, faster-growing suburbs that often lack access to services, employment, and public transport.

Integration of Health Outcomes

Modern definitions, often mapping liveability to health data, directly link urban design to public health outcomes, such as reduced risk of chronic diseases through better, active, and accessible infrastructure.

Overall, as of 2026, the Australian definition of a liveable city aims to create safe, inclusive, and environmentally sustainable urban environments where everyday life is easy and accessible.