Regions booming as more Australians opt out of city living

The Regional Movers Index (RMI) net internal migration data shows regional New South Wales was attracting the most new residents with 36 per cent of sea-changers and tree-changers choosing the area.

Regional Australia was booming with almost 25 per cent more people moving from the city to the country than in the opposite direction during the quarter, the data found.

Sydney suffered a major exodus in 2023 with 65 per cent of all inner city migration outflow coming from NSW's capital. Melbourne accounted for 35 per cent of city to country movers.

This increased country migration should spur policy-makers into investing more in regional infrastructure, Regional Australia Institute (RAI) chief economist Dr Kim Houghton said.

Physical and social infrastructure including housing, healthcare, education and transport was needed in regional areas to support growing populations and to ensure these communities could reach their full economic potential, he said.

Regional movers data was developed in conjunction with the Commonwealth Bank and RAI. It's based on 16 million Commonwealth Bank customers and their movements between country areas and capital cities.

The leafy, artistic town of Bellingen, inland from the NSW Mid North Coast, was one regional NSW area experiencing massive expansion with a threefold increase in its annual growth rate in 2023.

Regional Queensland followed close behind NSW's population boom with 32 per cent of city dwellers choosing the sunshine state.

Queensland's pristine beaches and relaxed lifestyles meant the Sunshine Coast, Gold Coast and Fraser Coast were among the most coveted regions for movers.

The Sunshine Coast was the most popular regional relocation by far accounting for 17.5 per cent of internal migration in Australia.

RAI CEO Liz Ritchie said "regional Australia offers something more for many people, especially those from big cities. More space, more time, more affordability".

"This shift, away from capital city living, has been underway now for a decade," she said.

"It was definitely super-charged by COVID, but this data proves the regions are still very desirable for a significant proportion of the population."

Regional Australia has "really strong employment opportunities", Commonwealth Bank executive general manager of regional and Agribusiness banking Paul Fowler said.

Around 87,000 regional jobs were available in early 2024 "across a broad range of industries", Mr Fowler said.

As regional businesses expanded, their need for staff would grow in 2024, he said.

"Affordability and cost of living is a topic on the mind of many Australians," Mr Fowler said.

High grocery and rental prices in capital cities was encouraging Australians to choose "far more affordable options in terms of both housing but also broader cost of living", he said.

Country Australia offered a "wonderful lifestyle" to young families and retirees, Mr Fowler said.

The amenities of regional Australia, the space and the lack of congestion were compelling reasons that people from across all age demographics were choosing to move to the country, he said.