Generation Z has become the cohort most likely to consider moving to regional Australia, with 49 per cent of city-dwelling 18-to-29-year-olds contemplating a relocation – up from previous years when Millennials led the charge.
The findings come from annual market research commissioned by the Regional Australia Institute (RAI) and conducted by YouGov, which surveyed more than 1,000 capital city residents in late 2025.
Overall, 37 per cent of metropolitan Australians – equivalent to 5.3 million people – said they would consider a future move to the regions. Cheaper cost of living, more affordable housing, and proximity to nature topped the list of drawcards.
RAI CEO Liz Ritchie said the results signal a demographic shift that employers and policymakers need to prepare for.
“The cliché is that older metro-dwellers look to the regions when they retire, but in fact the desire for the younger cohort to make the shift from our cities is increasing,” Ms Ritchie said.
“Young people are not just chasing a tree change, they’re looking for career opportunities, lifestyle benefits, and communities where they can thrive.”
For Gen Z workers specifically, a salary increase was the top factor that would persuade them to take a regional job (61 per cent), followed by a financial incentive such as a relocation payment (49 per cent) and faster career progression (45 per cent).
Notably, concerns about limited job opportunities in regional areas have dropped sharply. In 2020, 55 per cent of respondents cited this as their biggest barrier to moving. In 2025, only 27 per cent listed it as a concern.
Lewis Romano, founder of jobs platform ViewJobs, which partnered with RAI on the research, said regional markets are actively competing for talent.
“We’re seeing strong salary growth and faster career progression in many regional markets compared to metropolitan equivalents, which is a powerful drawcard for younger workers considering the move,” Mr Romano said.
The main barrier for younger potential movers was fear of isolation from family and friends, cited by 44 per cent of Gen Z respondents.
For Baby Boomers, healthcare access was the dominant concern at 71 per cent.
Millennials showed a different pattern – their top concerns were limiting their career (40 per cent) and taking a pay cut (39 per cent), reflecting their mid-career stage.
Sydneysiders were the metro residents most likely to consider a regional move (41 per cent), followed by Melburnians (38 per cent).
The research also found a gender gap: 41 per cent of men indicated they were likely to move, compared to 33 per cent of women.
For those considering a move, timeframes have shifted. Just six per cent of potential movers said they would relocate within six months, down from 10 per cent in 2024. However, 34 per cent said they would move within three to five years, up from 25 per cent a year earlier.
Ms Ritchie said the findings support the RAI’s call for 40 per cent of homes built under the National Housing Accord to be located in regional areas.
“The momentum to move to the regions continues, so we need to plan for it,” she said.
