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Net migration to regional areas has reached a two-year high, with more Australians choosing to relocate for affordable living, job opportunities, and an improved quality of life.
The latest Regional Movers Index (RMI) report for the September 2024 quarter, jointly released by the Regional Australia Institute (RAI) and Commonwealth Bank, showed a significant increase in city-to-regional migration, with 35.6 per cent more people moving from capital cities to regional areas, then in the opposite direction.
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Data collected over the past three months showed that city-to-regional relocations are now situated 19.8 percentage points above the pre-COVID-19 average and 1.8 per cent above the average recorded during the height of the pandemic lockdowns.
Contrastingly, the CEO of RAI, Liz Ritchie, said that “the inter-regional migration index – which tracks regional to regional relocations – has fallen by 5.1 per cent, suggesting that more regional residents are content to stay where they are”.
“With the continuing strong jobs market across regional Australia, increasing city property price and ongoing cost-of-living pressures, it’s no surprise the regions remain desirable,” Ritchie said.
Unpacking the report’s findings, Ritchie said that “the net migration index, measuring the population flow into regional Australia, is now sitting at its highest level since March 2022, and is 80 per cent above the pre-COVID average”.
As a result of this movement, Ritchie said that it’s “vital this demographic shift is recognised, and regional communities are provided with the infrastructure, services and support they need”.
“As a nation, we must acknowledge that we are in a new era of migration where regional Australia is at the forefront,” she said.
The report showed that the east coast of mainland Australia has continued to attract the majority of city movers relocating to a regional area by accounting for 90 per cent of all net regional inflows, with regional NSW comprising 36 per cent of the movement, regional Victoria 30 per cent, and regional Queensland 24 per cent.
CBA executive general manager of regional and agribusiness banking, Paul Fowler, said that Maitland in regional NSW has surged to prominence over the quarter, recording a 3.4 per cent share of net internal migration, fuelled by strong inflows from both city and regional movers.
Fowler said that Maitland’s close proximity to Newcastle enables residents to benefit from “strong employment and a full-service city” and that the area is undergoing significant development set for further growth over the decade due to its “housing affordability and high standard of living”.
“Maitland is also set to benefit from major investments in the area including the nearby Newcastle Airport which will welcome international flights from 2025, further enhancing the region’s accessibility and economic profile,” Fowler said.
The report also showed that areas in regional Victoria experienced the largest surge in popularity over the 12-month period to September 2024, with its share of net regional inflows rising from 21 per cent to 30 per cent.
“Trending scenic LGAs like Queenscliffe on the coast, as well as Moira, Wangaratta and Strathbogie located further north, offer attractive and more affordable lifestyle opportunities for many Australians,” Fowler said.
Looking at the states where migration is coming out of cities and into the regions, Sydney and Melbourne continued to lead city-to-region migration over the 12 months to September, with NSW’s capital accounting for 57 per cent of capital city net outflows (down from 80 per cent the previous year), while Melbourne contributed 38 per cent (up from 27 per cent).
While city movers continued to favour large regional centres, the report said that growth hotspots are emerging in more distant areas, including Bunbury in Western Australia, Scenic Rim in Queensland, and Murray Bridge in South Australia.
Although regional-to-regional relocations slowed this quarter, movers followed similar trends to city relocators, with growth hotspots emerging in smaller communities such as the Whitsunday in Queensland, and Port Stephens and Ballina in NSW, while the majority were drawn to larger centers such as Toowoomba and Townsville in Queensland.
Weighing in on the future outlook for the country’s regional markets, Ritchie emphasised the region’s “ongoing strong growth” in saying it was “vital that they remained top-of-mind for decision-makers”.
“Regional Australia is truly the nation’s new frontier. There are so many opportunities in our regional communities, but likewise we know there are challenges,” Ritchie said.
“Housing for example remains a key ongoing concern in many communities. Regional Australia is growing, and for that to continue, we need adequate foundations. The time to lay them is now.”
[Related: Over 1/3 of suburbs now have a median price point over $1m]
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