Regional New South Wales (NSW) has become the most popular destination for Australian metropolitan movers amid a city exodus caused by high living costs and lifestyle changes.
The Commonwealth Bank of Australia and the Regional Australia Institute have released a new report indicating the latest trends in the movement of people between capital cities and regional areas.
Specifically, among the people moving from capital cities to rural areas, 39 percent ended up in regional NSW, up from 26 percent in the previous year.
Regional Queensland accounted for 33 percent of net capital outflows, followed by regional Victoria at 21 percent, regional Western Australia at 8 percent and regional South Australia at 5 percent.
In contrast, regional Tasmania and the Northern Territory saw an outflow of 6 percent and 1 percent, respectively, as more people from these areas moved to other places.
Sydney continued to be the heart of the city exodus, as 80 percent of all the people moving to regional areas originated from this city, up from 61 percent previously.
The Sunshine Coast in Queensland was the hottest spot for movers, accounting for 16.7 percent of all net internal migration flows.
Meanwhile, the Snowy Valleys local government area in southern NSW experienced the most significant growth, with an over 200 percent increase in net internal migration in the September quarter.
Regional Australia Institute CEO Liz Ritchie said the outflow of people from cities to regional areas continued to remain strong post-COVID-19 pandemic, as the overall number of movers in the September quarter was at its third highest level since March 2018.
Why People Are Leaving
According to the report, high living costs in capital cities were a major contributor to the ongoing city exodus.“As cost of living pressures escalate, the latest data shows city dwellers are continuing to flock to the regions at a higher rate than those moving in the opposite direction,” it said.
“In the 12 months to September 2023, capital to regional migration accounted for an 11 percent share of all relocations, compared to 9.1 percent making the move from the regions to the city.”
And over the September quarter, inflation grew by 1.2 percent, up from 0.8 percent in the previous three months.
The prices of food and non-alcoholic beverages increased by 4.8 percent in the year to September, while housing grew by seven percent.
In addition, health, transport and recreation experienced growth of between 5.4 and 5.6 percent.
Meanwhile, Commonwealth Bank Executive General Manager Regional and Agribusiness Banking Paul Fowler said many regional areas were attractive to city dwellers because they had high levels of business activity and investment and also offered various lifestyle benefits, including more affordable housing, cheaper cost of living, less traffic congestion, and strong community connections.
“Digital connectivity also means that where you are is less relevant today. As a result, it’s likely many millennial small business owners are choosing to take advantage of the increasing investment and interest in regional development.”
Capital cities saw a net outflow of 11,800 people, the largest quarterly loss ever recorded.
