A new study led by the School of Architecture, Design and Planning at the University of Sydney reveals that more people have been leaving Australia’s capital cities for regional areas than moving in from regional locations – an ongoing trend that predates COVID-19 by nearly a decade.
Report key findings
- More people move out of Australia’s capital cities than into them from regional areas, a pattern observed nearly every year since 2007.
- Those moving to regional areas tend to be older and wealthier, seeking improved lifestyle opportunities and homeownership.
- Housing costs in regional areas are rising because of internal migration.
- Policymakers lack timely and consistent population data needed to effectively plan for infrastructure and services in growing regional areas.
Addressing regional growth challenges – what's needed:
To ensure Australia’s regional growth is sustainable, the report's findings suggest actions for policymakers:
- Develop a nationally consistent program to collect and use local population data for better regional planning.
- Introduce incentive programs to attract professionals in high-value industries such as technology and research to regional areas.
- Enhance coordination between federal, state and local governments to address regional growth challenges.
- Increase investment in regional infrastructure such as transport, healthcare, education, and housing to support non-metropolitan communities.
Migration patterns and regional housing pressures
The report, ‘Inquiry into projecting Australia’s urban and regional futures: population dynamics regional mobility and planning responses’, undertaken for the Australian Housing and Urban Research Institute (AHURI) was led by Professor Nicole Gurran, Chair of Urbanism at the University of Sydney.
Made up of four separate research projects, the report paints a detailed picture of Australian internal migration and investigates different ways to predict and support local population growth and change, and looks at what drives people to move between urban and regional Australia.
“Our research found that the people leaving cities are typically not young people at the start of their careers, but are older people with more financial resources,” Professor Gurran said.
“They are often seeking a better lifestyle and often become homeowners in their new location.”
The study also shows that regional hotspots experiencing the strongest growth are those close to major cities and along the coast, where climate, education levels and tourism industries are key drivers.
However, the increased demand for housing in these areas has led to significant price hikes, displacing lower-income households to more remote regions.
“With rental and purchase costs rising, it is critical that governments provide financial support and rental relief to low-income renters in regional areas,” Professor Gurran said.
“With more Australians choosing to relocate to regional areas, governments must act now to ensure sustainable growth, affordable housing, and well-planned infrastructure. Reliable, up-to-date population data will be critical in guiding these decisions.”
Hero photo credit: Aerial view of a residential housing estate on the Central Coast, Newcastle. Dean Lewins/AAP.
