Younger Australians flock to regions

The latest Regional Movers Index – a partnership between the Commonwealth Bank and the Regional Australia Institute (RAI) – found the overall volume of people moving from major cities had dropped 35 per cent since the March quarter, but the portion of younger people had increased their share.

The June quarter figures revealed that regional people have “resumed their migration” back to the capital cities.

Notwithstanding this latest quarterly decline, net migration to regions remains 30.2 per cent higher than two years prior to COVID-19.

Following a five-year high in the March 2022 quarter, the number of people moving from capital cities to regions fell by 16.5 per cent during the June quarter.

During the height of the pandemic capital city people moved to regions in “record numbers”, around 15.4 per cent more than in two years pre-COVID, the report said.

According to the index, young people are the driving force behind the growth in the regional economies and they have increased their share since COVID-19.

For example, in NSW, the median age of the average regional mover fell from 37 years to 33 years pre-pandemic compared to during COVID-19, and from 38 years to 34 years in South Australia, and from 35 years to 33 years in Queensland.

Commonwealth Bank regional and agribusiness executive general manager Paul Fowler said regional economies were “booming” and many businesses are investing and innovating to strengthen their capabilities and grow, which was creating new employment options.

“This is particularly in key sectors such as agriculture and manufacturing where there continues to be strong production and revenue growth, ” Mr Fowler said.

The major coastal cities close to the east coast capitals are the main destinations for city dwellers making a regional move – Gold Coast welcomed 11 per cent of all capital-city movers, Sunshine Coast 6 per cent, Greater Geelong 4 per cent, Wollongong 2 per cent, and Lake Macquarie 2 per cent.

Three of the top five highest-growth local government areas in the 12 months to June 2022 were in South Australia with young people making up the largest proportion of movers from cities.

Mount Gambier experienced a 90 per cent increase in regional movement over the year, while capital-city people moving to Port Augusta rose 63 per cent and the Yorke Peninsula 50 per cent.

Other LGAs such as Moorabool in Victoria grew significantly, while Bathurst saw a 39 per cent increase in annual growth.

Regional Australia Institute chief executive Liz Ritchie said the recent easing of movement to the regions should take the pressure off housing demand and provide breathing space for regions to plan for the future.

“We know people are happier when they choose a life in the regions, but investment in creating a sustainable model for regional Australia to accommodate the changing nature of our populations trends is needed,” Ms Ritchie said.

[Related: Regional migration accelerated in March quarter]