Younger individuals and families seek more affordable areas to settle in
The number of city-dwellers moving to regional areas has reached a 12-month high, according to the latest Regional Movers Index (RMI).
The index, a partnership between Commonwealth Bank of Australia (CBA) and the Regional Australia Institute (RAI), shows a surge in metro to regional relocations in the first quarter of the year, now 20% above the pre-COVID average.
Data from the March 2024 quarter shows internal migration has soared in the first three months of the year, marking the fifth largest quarter of regional influx from cities in the past six years.
RAI chief executive Liz Ritchie (pictured above left) said the figures indicate a continuing regional renaissance, with 24% more people moving from cities to regions than vice versa.
“People are voting with their feet and making a very conscious decision to live in regional Australia,” Ritchie said. “While the pandemic supercharged this movement, the regional lifestyle is continuing to prove highly desirable for thousands of people, especially those from cities.
“This movement in population can no longer be seen as a quirky flow-on effect from the lockdown years. A societal shift is underway. This sustained trend provides tangible evidence regarding the importance of investing in and supporting the regions, to ensure communities have the services, skills, and infrastructure they need for their growing populations.”
Commonwealth Bank’s regional and agribusiness executive general manager Paul Fowler (pictured above right) noted that millennials – those born between 1981 and 1995 – are the most mobile demographic, with the Gold Coast being a popular destination.
“This quarter’s report paints the picture of younger individuals or younger families looking for somewhere that’s more affordable,” Fowler said. “Many are opting for the large regional centres which are buzzing with business activity and investment, offering a great range of employment opportunities.”
Ritchie observed a trend where metro movers initially living in commuter belts of major cities are relocating to regional centres within a few years.
“With high house prices and cost-of-living pressures biting, many people are realising the regions can offer the lifestyle they want and the jobs they’re after, minus big city problems – like long commute times, tolls and traffic,” she said.
The Sunshine Coast remains the top destination for internal migration, securing a 16% share of net internal migration flows over the past 12 months. Sydney continues to lead in net outflows to regions, accounting for 67% of such movements over the year to March 2024.
Further analysis shows regional New South Wales, Queensland, and Victoria accounted for 97% of net capital outflows in the past year, up from 94% the previous year.
Fowler noted that areas within a 150-kilometre radius of a capital city are among the most popular for metro-leavers.
“The Sunshine Coast topped the list for the fifth consecutive quarter with an 11.8% share of net capital to regional migration, while the Gold Coast came in second place – with the highest quarterly growth rate of the top five – followed by Moorabool (Vic), Lake Macquarie (NSW) and Greater Geelong (Vic),” he said.
Western Australia also emerged as an attractive destination, with Capel, Greater Geraldton, Northam, and Albany appearing on hotspot lists this quarter.
“Regional LGAs on, or near, the sea were found to be this quarter’s top five growth regional hotspots, with Capel in the southwest of Western Australia making its debut in the top five with a near five-fold increase in net internal migration inflows on the back of its popularity amongst regional movers,” Fowler said. “What this shows us is many Australians are still seizing their sea change dreams.”
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