Australians are increasingly abandoning the bustling metropolises of Sydney and Melbourne in significant numbers, opting instead for a more relaxed lifestyle by the beach or in regional areas. According to the latest figures from the Australian Bureau of Statistics, approximately 33,000 residents departed Sydney and 8,500 left Melbourne during the 2024-25 financial year.
Top Destinations for City Leavers
The Regional Movers Index has identified the Sunshine Coast as the most favoured destination for those relocating from urban centres. Greater Geelong secured the second spot, followed closely by the Fraser Coast, Lake Macquarie, and Moorabool. This trend highlights a growing preference for regional living over city life.
Insights from Regional Australia Institute
Liz Ritchie, CEO of the Regional Australia Institute, noted that this movement is not limited to city dwellers alone. "We are observing a pattern where capital-city residents continue to choose popular locations, while regional-to-regional movers are exploring other areas," she explained. "Queensland remains a hotspot, but regional movers are venturing further from the Sunshine Coast in pursuit of affordability."
Ritchie also pointed out that residents from Brisbane and Perth are increasingly seeking regional options, a trend that is gaining momentum. She emphasized that an exodus is occurring across all major cities to some extent, with Sydney and Melbourne being the primary contributors to regional population growth, accounting for 54% and 38% of net outflows, respectively.
Drivers Behind the Migration
"While the majority of city leavers hail from Sydney and Melbourne, other capitals are also experiencing outflows," Ritchie stated. "Factors such as housing affordability and job opportunities are likely motivators. What remains unchanged is the sustained interest in making a regional move."
She added that capital-to-region migration remains robust, with numbers reaching their second-highest level since the pandemic ended.
Economic and Social Implications
Kylie Allen, Executive General Manager of CBA Regional and Agribusiness Banking, anticipates that this "solid and consistent growth" will persist. "It represents a broadening of regional growth beyond the usual hotspots," she remarked. "Strong regional-to-regional movement and increasing interest in areas like the Fraser Coast indicate a maturing migration pattern, where individuals are making deliberate, long-term decisions about their living and working environments."
Allen stressed that this shift presents significant opportunities but also underscores the necessity for coordinated planning around housing and infrastructure investment. "Ensuring regions can sustain momentum and support growing communities is crucial," she concluded.
Impact of Overseas Migration
Despite the domestic exodus, both Sydney and Melbourne continue to experience population growth, primarily driven by overseas migration. ABS data shows net overseas migration of 78,000 in Sydney and 81,000 in Melbourne. In Brisbane, the population increased by 34,000 due to overseas arrivals and 11,000 from internal migration, while Perth saw 37,000 overseas arrivals and 8,000 from within the country.
