Australians increasingly opt for regional living as city costs soar
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Photo by Harrison Reilly
Australians are increasingly turning their backs on the high costs of city living, with Sydney residents leading the migration to more affordable and attractive regional areas. This trend is highlighted in the latest Regional Movers Index, a collaborative report from the Commonwealth Bank and the Regional Australia Institute (RAI), which provides insights into the growing migration from urban centres to regional locales.
Sydney, known for its sky-high property prices, is witnessing a significant exodus. According to the report, Sydneysiders account for 54% of net capital outflows, considerably outpacing Melbourne, which contributes 38%. This movement is part of a broader pattern where capital-to-regional migration constituted nearly 12% of all relocations between local government areas across Australia in the December quarter. This figure represents the second-highest share of relocations since the end of the pandemic in 2022.
The Sunshine Coast in Queensland has emerged as the top destination for those leaving capital cities, followed by Geelong in Victoria. Other popular choices include Queensland’s Fraser Coast, New South Wales’ Lake Macquarie, and the Moorabool region near Melbourne. However, the trend is shifting slightly, with fewer city dwellers moving to these top two regions compared to the previous year. Many are now venturing even further afield, seeking more affordable options away from the immediate proximity of capital cities.
Liz Ritchie, chief executive of the RAI, commented on this evolving trend, stating, “We are seeing a trend of capital-city dwellers still choosing popular locations, but regional-to-regional movers looking elsewhere. Queensland remains popular, but regional movers are going further out from the Sunshine Coast in search of affordability.”
The report also highlights that regional home prices are on the rise. The PropTrack Home Price Index shows a 0.6% increase in regional prices in February, marking a 10.5% year-on-year growth. Mandurah, located on Perth’s southwest coast, currently boasts the highest growth rate in the country for home prices.
REA Group senior economist Eleanor Creagh noted the competitive advantage of regional areas, saying, “Growth in regions has outpaced the capitals over the past year (10.5% vs 8.6%) and five years (59% vs 41%), supported by relative affordability and lifestyle appeal.”
Western Australia has emerged as a standout performer in the property market over the past 12 months. The median cost of a home in the region has surged by 14.9% compared to a year ago. This trend is mirrored in other parts of the country, with regional home prices rising by 13.4% in Queensland, 13% in South Australia, and 10.9% in Tasmania.
The migration trend is not limited to Sydney and Melbourne. Residents of Brisbane and Perth are also increasingly seeking regional alternatives. Ritchie observed, “Brisbane, which previously attracted net inflows, recorded net outflows to regional areas. Perth, meanwhile, went from being a net recipient of inflows to recording a balanced flow of migration.”
While housing affordability remains a primary driver for this migration, job opportunities in regional areas are also playing a crucial role. Ritchie emphasised the sustained interest in regional moves, stating, “What hasn’t declined is interest in a regional move. Capital-to-region migration remains robust.”
This shift in migration patterns underscores the growing appeal of regional areas, which offer a blend of affordability, lifestyle benefits, and emerging job opportunities. As Australians continue to reassess their living arrangements in the wake of the pandemic, regional areas are poised to benefit from this influx of new residents seeking a change from the high costs and fast-paced life of the capitals.