City dwellers move to the regions in droves: CBA

The Commonwealth Bank of Australia (CBA) released its quarterly Regional Movers Index (RMI) last Friday (31 May) and found that the number of city dwellers moving to regional Australia hit a 12-month high.

According to CBA, the number of city dwellers moving to the regions was 20 per cent above the pre-COVID-19 average.

The major bank’s research was conducted in partnership with the Regional Australia Institute (RAI) and analysed the quarterly and annual trends of regional relocation for the March quarter (ended 31 March 2024).

The data found that the number of city dwellers moving to the regions in March 2024 was the fifth-largest quarter of influx in the past six years.

Liz Ritchie, CEO of the RAI said the figures demonstrate that Australia’s “regional renaissance” is not over yet, with 24 per cent more people moving from the city to regional Australia than regional Australians moving to the cities.

CBA’s report found that Millennials (those born between 1981 and 1995) were the key demographic movers from cities to regional areas across all states.

NSW Premier Chris Minns echoed similar sentiments last week when he announced updated housing targets for NSW, noting that the state had lost twice as many young people aged 30–40 between 2016 and 2021 than it gained.

He continued that Sydney was at risk of becoming “a city with no young people”.

The Sunshine Coast was the most popular location for city dwellers to relocate to, taking in 16 per cent of net internal migration flow over the past 12 months. Sydney was identified as “the nation’s biggest shedder of people”, according to CBA, with 67 per cent of net capital city outflow to the regions originating in Sydney in the year to March 2024.

According to the report, most city dweller movers relocated within 150 kilometres of a capital city.

The report found that regional Queensland, Victoria, and NSW made up 97 per cent of net capital city outflows in the year to March 2024, an increase from 94 per cent in the previous year.

Ritchie said: “People are voting with their feet and making a very conscious decision to live in regional Australia. Whilst the pandemic supercharged this movement, the regional lifestyle is continuing to prove highly desirable for thousands of people, especially those from cities.

“This movement in population can no longer be seen as a quirky flow-on effect from the lockdown years. A societal shift is underway. This sustained trend provides tangible evidence regarding the importance of investing in and supporting the regions, to ensure communities have the services, skills, and infrastructure they need for their growing populations.

“With high house prices and cost-of-living pressures biting, many people are realising the regions can offer the lifestyle they want and the jobs they’re after, minus big city problems – like long commute times, tolls and traffic.”

CBA’s regional and agribusiness executive general manager Paul Fowler said: “This quarter’s report paints the picture of younger individuals or younger families looking for somewhere that’s more affordable.

“Many are opting for the large regional centres which are buzzing with business activity and investment, offering a great range of employment opportunities.”

[Related: NSW increases housing targets]