The Australian Housing and Urban Research Institute (AHURI) has revealed that since 2007, more people have moved out of Australia’s state and territory capitals than moved in from regional or rural areas in all but one year.
Contrary to popular belief, those leaving cities aren’t primarily young professionals but older, financially secure individuals seeking a better lifestyle.
Professor Nicole Gurran from the University of Sydney, who led the research, said the demographic profile of regional movers is surprising to many.
“Our research found that the people leaving cities are typically not young people at the start of their careers, but instead are older people with more financial resources,” Professor Gurran said.
“They are often seeking a better lifestyle and often become homeowners in their new locations.”
The strongest growth is occurring in regions near metropolitan centers and along coastlines, particularly areas with favorable climates, higher numbers of university graduates, and robust tourism sectors.
This migration pattern is creating significant housing affordability challenges in regional Australia.
The research indicates that increased migration leads to higher prices for both rentals and home purchases, not only in the locations where people are settling but also in surrounding areas.
“House prices in regions further away are impacted as low-income households are forced to move significant distances looking for housing they can afford,” Professor Gurran said.
The ripple effect of rising housing costs is displacing vulnerable regional residents, prompting researchers to call for increased financial support for low-income renters and greater investment in social and emergency housing in regional areas.
The AHURI research also highlighted the need for more accurate and timely population data to help policymakers plan essential services for growing regional communities.
“Government has been relatively conservative in its use of data,” Professor Gurran said.
“There is limited use of novel generation methods and non-traditional data sources.
“To respond to the demands of rapidly growing regions, planners need more consistent and timely data.”
The research recommends several policy actions, including developing a nationally consistent program for gathering timely population data, creating incentive schemes to attract high-value industries to regional areas, and coordinating efforts across all levels of government.
Significant investment in regional infrastructure such as airports, transport networks, educational institutions, and healthcare facilities is also recommended to support the growing population in non-metropolitan areas.
“The research highlights the growing connections between urban and regional house prices. Importantly, with more people moving to regional areas putting pressure on housing costs, low-income renters in regional areas need support through financial help and rental relief,” Professor Gurran said.
“There is also a real need to increase social and emergency housing investments in regional Australia.”
