Regional Australia Continues to Attract City Dwellers
Regional Australia remains an attractive option for capital city residents, with 26 per cent more people relocating to regional areas than moving in the opposite direction.
According to the latest Regional Movers Index (RMI) for the June Quarter, the Sunshine Coast has reclaimed its position as Australia’s top regional destination for net migration in the year to June 2025, overtaking Greater Geelong which had briefly claimed the top spot in the March quarter.
Several regional centres are experiencing remarkable growth, with Albury in NSW recording a 16-fold increase in net migration from capital cities over the past year.
The East Pilbara region in Western Australia topped the list of growth hotspots with a striking 311 per cent annual increase in migration, followed by Hinchinbrook in Queensland, Murrindindi and Albury in NSW and Greater Shepparton in Victoria.
Queensland has strengthened its position as a leading destination for internal migration, increasing its share of net movement from capital cities to regional areas from 19 per cent in 2023-2024 to 31 per cent in 2024-25.
This places Queensland second only to New South Wales, which accounts for 34 per cent of regional migration, while Tasmania has reversed previous outflows to record a 4 per cent net inflow to its regional areas.
The report reveals that while overall movement across Australia declined by 15.2 per cent, including capital-to-capital relocations, specific regional areas continue to thrive as migration hotspots.
Liz Ritchie, CEO of the Regional Australia Institute (RAI), said there was a growing appeal of regional living.
“Regional Australia is no longer a second choice – it’s the smart choice,” Ms Ritchie said. “From career opportunities to community connection, the regions are delivering.”
Kylie Allen, CBA’s Executive General Manager Regional and Agribusiness Banking, highlighted the specific appeal of regions like Albury-Wodonga that are seeing significant population growth.
“Albury and neighbouring Wodonga offer exceptional lifestyle and economic opportunities attracting both business investment and workers choosing to relocate there,” Ms Allen said.
“With more affordable land in close proximity to major cities and airports, a range of major employers based there that are continuing to recruit, educational institutions and many lifestyle benefits, it’s no surprise to see how these regions are thriving.”
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