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What’s driving so many Aussies to relocate?

More than a quarter of Australians are planning to move within the next 12 months, with cost of living pressures and the search for better housing options driving the trend.

According to the 2025 Muval Index, which analysed over 400,000 moving enquiries and surveyed 2,000 Australians, 28 per cent of people are considering relocation in the coming year, with upgrading to a better home (35.5 per cent) and reducing the cost of living (31.3 per cent) being the top motivations.

The need for more space ranked as the third most common reason for moving at 27.4 per cent, while seeking a better lifestyle, such as coastal living or quieter areas, was cited by 20.8 per cent of potential movers.

The Australian Capital Territory emerged as the most popular destination for relocators, with an inbound-to-outbound ratio of 1.2, meaning that for every 100 people who leave, 120 are moving in. 

Victoria and Western Australia followed with positive migration rates of 1.11 and 1.01, respectively.

For those who had already moved in the past year, affordability was overwhelmingly the most important factor when choosing a new home, cited by 78.2 per cent of respondents.

Living in a safe neighbourhood (47.6 per cent) and proximity to work or study (37.6 per cent) were also significant considerations.

The data reveals a continuing trend of Australians favouring regional areas over capital cities. 

With the exception of Greater Melbourne, regional areas outperformed all capital cities in terms of net migration, suggesting that many Australians are attracted to the space, affordability, and slower pace that regional centres offer.

This shift toward regional living appears to have accelerated in the post-pandemic world, as remote work options have made it possible for more people to live away from major urban centres while maintaining their employment.

The housing crisis and rising rental prices across Australia are clearly influencing moving decisions, with 16.3 per cent of respondents specifically citing the search for more affordable housing as their reason for relocating.

Other significant motivations for moving included downsizing (17.7 per cent), buying a first home (13.3 per cent), moving closer to family or support networks (12.5 per cent), relocating for a new job (10.8 per cent), and seeking access to better schools (10.5 per cent).

Muval CEO James Morrell said that moving patterns have evolved significantly in recent years. 

“In the five years since we began publishing the Muval Index, we’ve seen Australians move for countless reasons – seeking space, lifestyle upgrades, better jobs, fleeing COVID lockdowns, or to be closer to family,” Mr Morrell said.

โ€œBut over the past 12 months, the more intriguing story is not why people are moving, but rather why they aren’t.โ€

The findings suggest that while many Australians are still on the move, others may be staying put due to various constraints, potentially including the high costs associated with relocating in the current economic climate.

“The data reflects a nation in transition, with affordability being the top driver for movers over the past 12 months,” Mr Morrell said.

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Rowan Crosby

Rowan Crosby is a senior journalist at Elite Agent specialising in finance and real estate.