The great Australian dream is changing lanes.
More city-dwellers than ever are deciding that the expense and squeeze of urban living just isn’t worth it anymore. Unlike previous decades, this migration isn’t made up of retirees looking for the quiet life. As housing costs in major cities continue their skyward climb, it's pricing many younger buyers out or forcing them into exhausting financial compromises.
A recent University of Sydney’s study has revealed that younger families, high-income professionals, and those who value a richer, slower lifestyle are leading the charge out of our capital cities and into booming regional communities.
The Australian Bureau of Statistics (ABS) reports the Greater Sydney experienced an internal migration loss of 41,100 people. Similarly, Greater Melbourne saw a net loss of 7,600 residents due to internal migration.
Meanwhile, regions like Newcastle, Bendigo, Orange, and the coastal towns near major metros mean spacious homes, lush yards, and lower mortgages. The median price gap between city and regional homes has rarely been wider, offering city homeowners substantial equity gains if they sell up and head out.
In Sydney, the average property price has escalated to 13 times the national average salary, a significant increase from 4.2 times fifty years ago. This surge has made homeownership increasingly unattainable for many, prompting a search for more affordable options in regional areas.
It’s not just mortgages. Every aspect of city life seems to carry a premium.
Tolls, childcare, parking fees, rent, and bills add up relentlessly, eating away at the city dream. Regional life serves up lower council rates, cheaper bills, and manageable living costs, freeing families to enjoy the kind of lifestyle that doesn't chew through your entire pay cheque.
What's driving the great city-to-country shift?
Obviously, the rise of remote work has thrown the shift to regional living into hyperdrive. According to the ABS, since August 2024, 36% of employed Australians reported usually working from home, a huge increase from pre-pandemic levels.
This trend spans sectors from creative industries to healthcare, tech, and education. Freed from daily commutes, professionals are now choosing their hometown based on lifestyle, not office proximity.
Younger Australians, particularly millennials, are leading the charge in relocating to regional areas. A report by Finder found that 13% of millennials have already made the move, seeking improved financial stability and a better work-life balance.
The Family Relocation Report by Muval, analyzing over 41,000 moves in the past six years, highlights that regional Queensland has the highest ratio of inbound to outbound family relocations.
The report shows that families are hungry for homes that better align with their life stage: more bedrooms, a backyard, or proximity to nature and better schools.
Infrastructure is also catching up. Before, going regional meant going without. Not anymore. Investments in transport, schools, healthcare and the internet mean regional areas are more connected and convenient than ever.
You'll find train lines, highways, and/or even direct flights, upgraded hospitals and schools, and a working NBN in many spots.
What are the regional hotspots on the rise?
Regional cities are not only absorbing these new residents but are also becoming population growth leaders. For instance, Greater Geelong surpassed Queensland's Sunshine Coast as the top destination for internal migration in the 12 months leading up to March 2025, capturing 9.3% of the total net movement.
Regional growth is leading the charge. According to the ABS, regional Australia has outpaced capital cities in population growth every year since 2020. People are making the move in big numbers, and they're not looking back. Here are some standout places driving that shift:
Sunshine Coast, QLD: The area is booming, with more than 17,000 new residents between 2021 and 2023. Why? Remote work, a major hospital expansion, and the promise of laid-back living without losing the perks.
Ballarat and Bendigo, VIC: Less than two hours from Melbourne, these historic towns are attracting families after more space and less stress. You still get strong schools, great healthcare and beautiful homes with more backyards.
Orange, NSW: Big on charm, big on opportunity. Orange is winning hearts with its booming food and wine scene, affordable properties, strong health, education, and the mining job market. Semi-rural living without missing out.
Hobart and Launceston, TAS: Tassie's drawcard? Natural beauty, creative energy and a lifestyle that's hard to beat. Hobart remains a magnet for remote workers and retirees, while Launceston is growing fast thanks to affordability and a vibrant local scene.
Mount Barker, SA: Just half an hour from Adelaide, Mount Barker is one to watch. Population forecasts show it could double in the next decade, helped along by major infrastructure upgrades and an influx of first-home buyers chasing value.
Lifestyle hubs are also the new commuter belts. Once, it was all about living close to the CBD. Now, people want to live somewhere that feels right, not just close enough.
Growth is also unlocking opportunity. With more people moving in, regional councils and state governments are investing to match demand. New roads, better transport, business hubs, healthcare, and more. That makes buying in regional Australia not just affordable but future-ready.
Here's a snapshot of what affordability looks like in 2025:
City/Region | Median House Price (2025) | Notable Trends |
|---|---|---|
$1,250,000 | Despite a recent 5.4% annual increase affordability remains a challenge for many buyers. | |
$565,000 | Experienced an 8.1% annual decrease, indicating a cooling market and increased affordability. | |
$590,000 | Saw a 2.7% annual increase reflecting steady growth in regional property markets. |
That price gap can mean first-home buyers finally getting on the ladder, investors seeing stronger yields and long-term potential, and upsizers securing more space without stretching their budget.
At Aussie, we've helped thousands of people buy smarter in the regions, from choosing the right spot to locking in a home loan that works for them.
What are the pros and cons of moving to regional hotspots?
Moving from metro to regional isn't just a shift in scenery; it's a full lifestyle upgrade. But like any big decision, it's worth clarifying what you'll gain, what might need adjustment, and how to make it work.
Pros | Cons |
|---|---|
Lower house prices can open bigger doors. | Capital growth might take time. |
A real sense of community. | Work might look different. |
Nature and space to breathe. | You'll likely rely more on your car. |
More money = less stress on your budget. | Services may vary by town. |
Let's start with the obvious; homes are simply more affordable.
In many regional centres, the median house price is hundreds of thousands lower than in the capital cities.
That can mean buying a home with a backyard (that you can turn into a veggie patch), lower monthly repayments, and extra borrowing power or equity to fund your next move. For first-home buyers, upsizers, or families, that price gap could be the key to finally buying the home they've been picturing.
However, capital growth might take time. While city homes often grow faster in value, regional growth can take more patience. That's not a deal-breaker; many regional towns see strong growth, especially with rising infrastructure. Remember, growth can be cyclical and driven by local demand.
Some areas can stay stable for longer before values lift, and rental yields may offer steadier cash flow.
That's where it helps to have a pro in your corner. An Aussie Buyer's Agent can help you pinpoint areas with real growth potential, not just the ones making headlines.
More money in your pocket means less stress on your budget. Regional living can mean cheaper groceries, childcare, and/or school fees, lower council rates and utility bills, and less money spent on tolls, parking, and midweek takeaway.
Depending on your field, you might need to explore new options. Industries like healthcare, trades, teaching, and agriculture are booming in these regions. However, some roles are less common, and salaries may be lower.
Remote and hybrid roles are growing, but not yet everywhere. Check job boards and connect with a local recruiter to get a sense of the area before moving.
Ready to make your regional move?
The great city-to-country shift isn't just about packing boxes and changing postcodes; it's about chasing a better way to live. For many Aussies, that means less stress, more space, and finally, owning a home that fits.
But, like any smart move, it pays to be prepared. The best outcomes happen when you've got the right advice, support, and a plan that works for your goals, not someone else's.
That's where Aussie comes in. Whether you’re upsizing, investing, starting fresh or just curious about what's possible, we're here to help you map it out, from understanding your borrowing power to unlocking your next property.
Because moving regionally isn't just a dream; it's a real opportunity with the right support. Let's make your next chapter your smartest one yet.