Immigration patterns Down Under continue to shift, with Australians increasingly trading city life for regional areas in search of space, savings and stability.
In fact, more people are moving out of capital cities than into them – 26% more – than into the cities, according to Commonwealth Bank's (CBA) June 2025 quarter Regional Mover Index (RMI). The report also showed that Australians moving from capital cities to regional Australia is 17% higher than pre-pandemic levels. At the same time, fewer people in Australia are moving from capital city to capital city – down 15.2% in the 12 months leading up to June 2025, compared with the previous index.
"Regional Australia is no longer a second choice. It’s the smart choice," said Liz Ritchie, chief executive officer at the Regional Australia Institute (RAI), a think tank that advocates for issues in regional parts of the country. "From career opportunities to community connection, the regions are delivering."
Hotspots included the East Pilbara region in Western Australia, where the annual increase in migration rose 311%. In the regional New South Wales town of Albury, on the border with Victoria, net migration from capital cities rose 16-fold. Other cities with large population influx include Townsville in Queensland, Bendigo in Victoria and Murrurundi in NSW, according to the report.
Among regions, the Sunshine Coast had the highest number of people migrating to it, followed by Greater Geelong in Victoria. In addition, the Hinchinbrook island region in Queensland and the Greater Shepparton area in Victoria were popular spots. By state, New South Wales had the highest number of people leaving its capital city for smaller regions, at 34%, followed by 31% of Queenslanders doing the same.
Australia’s capital cities are losing residents amid rising living costs, surging property prices and a tight housing market, all of which is pushing some people out. Even with lower interest rates, many would-be homeowners are still locked out of the property markets. For some, regional towns offer a way in, with more affordability, housing options, growing job markets and the added bonus of a slower pace of life.
George Li, director and principal at Sydney-based Leading Financial Solutions, said the uptick in Aussie swapping city life for space and affordability began during the pandemic, and hasn't slowed down since.
"I've seen more client inquiries from regional areas [since the pandemic]," Li told Australian Broker. "I don't think there's been a huge shift back the other way. There seems to be more of an outflow than an inflow."
Li points to soaring living expenses, particularly in big cities, escalating urban property prices, and a surge in regional job prospects combined with remote work flexibility as the key forces driving the shift.
Belinda Sugars, franchise owner and mortgage broker at Adelaide-based Mortgage Choice, added that a growing desire for space is pushing more people toward the regions.
"It's more appealing to get something like land rather than going to a smaller unit," she said.
"I'm not talking about really remote regions," Sugars continued. "I'm talking about regional areas that are an hour or two hours [from the city], where you can still get to the city in a reasonable time. And for some people – who have previously gone to work in another state – have come back for the lifestyle and no traffic jams, the things you get every morning in the cities. That type of thing."
It's unclear whether Australians will keep leaving capital cities in pursuit of more affordable living options.
Li said it depends on Australia's current government.
"Whether they can get more housing supply," he said. "And second, would be whether companies are more flexible going forward [with working conditions], or if they want to move to pre-pandemic working terms.
"But from what we've seen, the world really has changed after the pandemic," Li continued. "So I think it's going to be pretty much an internal state where we're going to see more outflow [from the cities.] And then, as the government spends more in the regional areas, you'll see more families moving there."
In addition, businesses are also following the shift, taking a greater interest in the regional areas, which brings more jobs and opportunities to regional residents.
The Australian Government committed $7 million to three new projects in the Albury-Wodonga area, including the Oddies Creek Splash Park, Wodonga Creek precinct and the Advanced Manufacturing Centre of Excellence.
Li noted that Brisbane has also had a high level of property inquiries thanks to the 2032 Olympic games set to take place in the city.
"I've seen a few of my clients move there because of the cheaper housing prices," he said. "But as well, there's more development there with the Olympics coming."
