Record numbers of Australians leave Sydney and Melbourne for coastal and regional communities
Sydneysiders and Melburnians are reshaping Australia’s population map as tens of thousands of people swap city skyscrapers for regional coastlines and quieter communities.
According to the Australian Bureau of Statistics, approximately 33,000 residents left Sydney and 8,500 residents left Melbourne in the 2024-25 financial year; because affordable housing, lifestyle and space appeal are pushing people to rethink where they live.
The Regional Relocation Index reveals Queensland is seeing the largest influx, led by the Sunshine Coast, the state’s most popular destination for city-seekers.
Other key regional destinations include Greater Geelong, the Fraser Coast, Lake Macquarie and Moorabool.
Regional Australia Institute chief executive Liz Ritchie said the trend went beyond city-to-region movements.
“We are seeing residents of the capital still choosing popular destinations, but those moving from region to region are looking elsewhere,” Ms Ritchie said.
“Queensland remains popular, but regional hauliers are moving further afield from the Sunshine Coast in search of affordability.
“We are also seeing Brisbane and Perth residents searching for areas in greater numbers, a trend that is accelerating.”
Sydney and Melbourne remain the largest contributors to regional population growth, accounting for 54 per cent and 38 per cent of net outflows respectively.
“While most of those leaving the city are from Sydney and Melbourne, there are also outflows from other capital cities,” Ms Ritchie said.
“They may be looking for affordable housing or job opportunities. What hasn’t dropped is the interest in a regional movement.”
Migration from the capital to the region remains strong, with figures reaching the second highest level since the end of the pandemic.
CBA Regional and Agribusiness Banking managing director Kylie Allen said growth showed no signs of slowing.
“This is an expansion of regional growth beyond the usual hotspots,” Ms. Allen said.
“The strong movement from region to region and growing interest in hubs such as the Fraser Coast signals a maturing migration pattern where people are making long-term choices about where to live and work.
“This shift brings real opportunity and reinforces the need for coordinated planning on housing and infrastructure investment so regions can maintain momentum and support growing communities.”
Despite migration, Sydney and Melbourne continue to grow thanks to arrivals from overseas, with net migration of 78,000 and 81,000 respectively.
While Brisbane grew by 34,000 people due to overseas migration and 11,000 people due to domestic migration, Perth welcomed 37,000 people from overseas and 8,000 from elsewhere in Australia.
