Regional Australia is the nation's destination of choice according to the latest Regional Movers Index (RMI) report, with data showing that while city dwellers are continuing to relocate out of metropolitan areas, regional Australians are increasingly staying put.
Regional Australia Institute (RAI) CEO Liz Ritchie said data from the September 2024 quarter report shows city-to-regional relocations are now sitting at 19.8 per cent above the pre-Covid average and 1.8 per cent above the average recorded during the height of lockdowns.
"In contrast, 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 prices and ongoing cost-of-living pressures, it's no surprise the regions remain desirable," Ms Ritchie said.
"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. 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."
The RMI is a partnership between the RAI and Commonwealth Bank of Australia (CBA), which analyses quarterly and annual trends in people moving to and from Australia's regional areas, with the latest results proving the appeal of regional living extends beyond coastal towns and areas within reach of the typical daily commuter belt.
CBA Executive General Manager Regional and Agribusiness Banking Paul Fowler said this quarter's report uncovered an exciting new entrant to the share of net internal migration hotspot list. Maitland, in regional NSW, recorded a 3.4 per cent share of net internal migration driven by strong inflows from both city and regional movers.
"The rising attraction of Maitland, a dynamic regional city of over 90,000 people, is due to grow over the coming decade driven mainly by its housing affordability and high standard of living. Located within easy proximity to Newcastle, its size and location allows residents to experience the benefits of strong employment and a full-service city, supported by a robust healthcare industry. There is significant development happening around Maitland, with extensive land releases for residential, industrial, commercial and retail fuelling strong employment and construction industry opportunities," Mr Fowler said.
"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. It's pleasing to see thriving regional cities like Maitland being recognised in this quarter's RMI."
Local Government Areas (LGAs) in regional Victoria also surged ahead in popularity when it came to annual growth in net internal migration, securing four of the five hotspot places including Wangaratta, Queenscliffe, Strathbogie and Moira.
"A move to regional Victoria remains on trend among those relocating, with the state's regional areas experiencing the largest surge in popularity in 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," Mr Fowler said.
"With more corporate employers setting up or relocating to Geelong, Queenscliffe's proximity to Greater Geelong and the Melbourne CBD means more regional Australians can enjoy diverse employment opportunities while living in a beautiful location with enhanced lifestyle opportunities. Victoria's regional businesses are also well-positioned to capitalise on increased migration with growth in industries like agribusiness, logistics, healthcare and education set to benefit from demand."
Mainland Australia's east coast remains popular with city movers relocating to a regional area, accounting for 90 per cent of all net regional inflows, with regional NSW securing a 36 per cent share, regional Victoria 30 per cent and regional Queensland 24 per cent.
However, regional movement is persisting nation-wide with this quarter's report continuing to track the top LGAs across states by share and growth in net internal migration.
Sydney and Melbourne continue to lead when it comes to migration out of cities and into regions, with the NSW state capital accounting for 57 per cent of capital city net outflows in the 12 months to the September quarter (down from 80 per cent the year prior), with those from the Victorian capital accounting for 38 per cent of capital city net outflows (up from 27 per cent the year prior).
While city movers continue to show a clear preference for large regional cities, growth hotspots are emerging further afield including in Bunbury (WA), Scenic Rim (Qld) and Murray Bridge (SA).
Though regional-to-regional relocations slowed down this quarter, movers followed a similar pattern to those from the city, with growth hotspots occurring in smaller communities including Port Stephens (NSW), Whitsunday (Qld) and Ballina (NSW); while the bulk of movers were attracted to larger centres like Toowoomba and Townsville in Queensland.
Mr Fowler added, "Toowoomba provides economic and infrastructure benefits akin to major cities. Located under a two-hour drive from Brisbane's CBD and Ipswich, it offers an affordable option with a strong education hub, healthcare sector and demand for construction trade services helping to generate promising local employment prospects and lifestyle benefits for residents."
The report also reveals 35.6 per cent more people are moving from capital cities to the regions, than back in the opposite direction.
Ms Ritchie said given the regions' ongoing strong growth 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. 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."
Go to CBA Newsroom for the latest news and announcements from Commonwealth Bank.
