A growing number of Australians are turning their backs on capital city living, with regional areas emerging as the new hotspots for lifestyle and affordability.
According to the latest Regional Movers Index (RMI) by Commonwealth Bank Australia and the Regional Australia Institute, the shift from cities to regional areas continues to gain strong momentum — even during typically slower relocation periods like December.
Sydney Leads the Regional Exodus
The data shows that Sydney dominates capital city outflows, accounting for 54% of net migration to regional areas, the highest in the country. Melbourne follows at 38%, meaning the two cities alone contribute to over 90% of all capital-to-regional movement.
The trend is clear: more people are choosing space, affordability, and lifestyle over the high costs of city living.
Migration Trends Backed by Data
From the chart data:
- New South Wales recorded the highest capital outflow, with 54% of residents leaving capital cities and 36% settling in regional areas (Dec 2025).
- Victoria followed, with 38% leaving and 27% relocating regionally.
- Queensland showed strong regional settlement growth, with 22% of movers settling outside capital cities.
- Migration from capital cities to regional areas exceeded the reverse flow by 31%, highlighting a strong net outward movement.
Overall, capital-to-regional migration accounted for 11.6% of all relocations across Australia, reinforcing its growing importance.
Regional Living Still on the Rise
Despite December traditionally being a quieter moving period, this year’s decline in migration activity was less pronounced compared to previous years. This suggests that the appeal of regional living remains resilient and consistent.
In fact, it marked the second-highest level of regional migration since 2022, following the post-pandemic surge.
Emerging NSW Regional Hotspots
Migration across New South Wales is expanding beyond traditional commuter zones, with more people exploring inland and coastal regional centres.
Albury
Albury continues to perform strongly, recording a 150.5% year-on-year growth. Its appeal includes:
- Strategic location between Sydney and Melbourne
- Strong employment opportunities
- Access to healthcare and higher education
- Lifestyle attractions like the Murray River and nearby ski fields
Lismore
Lismore is also seeing increasing demand as a regional hub, supported by:
- Expanding health, education, and professional services sectors
- Major infrastructure projects, including hospital upgrades
- Additional housing developments for essential workers
Local insights highlight Lismore’s growing appeal:
“Our local bankers are actually telling us that Lismore and the surrounding LGAs are seen as a more affordable alternative to coastal areas such as Ballina and Byron Bay.
The area is attracting retirees, younger families and skilled workers given its proximity to the major coastal towns.”
There is also a noticeable increase in development approvals in the region, driven by strong demand for housing supply.
A Broader Shift Across Regional Australia
Migration patterns are no longer limited to well-known regional centres. Instead, they are expanding into more diverse and distant locations across the country.
“What we are seeing now is that broadening into other further afield areas in regional Australia, but still for the same intent — lifestyle, housing affordability and housing supply.”
This reflects a national trend where Australians are prioritising flexibility, affordability, and quality of life when choosing where to live.
Why Australians Are Moving Regional
Several key factors continue to drive this shift:
- Affordability – Lower property prices compared to capital cities
- Lifestyle – More space, nature, and community-focused living
- Infrastructure Growth – Improved healthcare, education, and local amenities
- Remote Work Flexibility – Less dependence on living near CBDs
What This Means for Property Markets
The sustained demand for regional living is placing increasing pressure on housing supply, which may contribute to rising property prices and broader inflationary effects in some areas.
For buyers, sellers, and investors, this presents opportunities such as:
- Strong demand in regional markets
- Potential for long-term capital growth
- Increased competition for quality homes
Final Thoughts
The latest data confirms that regional migration is not just a short-term trend — it’s a lasting shift in how Australians choose to live.
“The report is showing us that Australians continue to choose regional living and moves from capital cities to the regions are still outpacing those moves in the opposite direction.”
As infrastructure continues to improve and lifestyle priorities evolve, regional Australia is set to remain a key focus in the nation’s property landscape.
