INDUSTRY NEWSNationalReal Estate News

City exodus: four in ten eye a move to regional Australia

Four in ten city residents are now considering a move to regional Australia, as new research reveals mounting pressure on regional communities to keep pace with unprecedented population growth.

The Regional Australia Institute’s (RAI) latest survey shows regional relocation interest has doubled from 20 per cent to 40 per cent in just 18 months, creating significant challenges for regional infrastructure and services.

The surge comes as key regional metrics show concerning trends, with rental vacancy rates dropping to 1.3 per cent and building approvals declining by 9.4 per cent over the past year.

RAI CEO Liz Ritchie said the findings should serve as a wake-up call for policymakers.

“Many regions are already struggling with housing, particularly rental markets, and until region-specific policy measures are put in place, this will only be further magnified,” Ms Ritchie said.

The research revealed significant pressures in areas like Far North Queensland, where population growth has reached 5.2 per cent over five years.

“In Cairns, the rental market remains tight – over the past 50 months since July 2020, 40 of those months recorded a vacancy rate of no higher than 1 per cent,” Advance Cairns CEO Jacinta Reddan said.

The research also highlighted workforce challenges, with 76,000 jobs currently available across regional Australia.

Despite some positive trends, including increased medical practitioners and easier recruitment, Ms Ritchie said there was a need for comprehensive planning.

“The RAI is calling for a long-term plan for regional Australia’s future that considers population movement, the skilled workforce requirement, service provision and infrastructure needs,” Ms Ritchie said.

“A place-based decision-making model, that would enable regions to have a greater say on how federal, state and territory government funding is spent is also critical,” she said.

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Rowan Crosby

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