The Sunshine Coast remains the top destination for Australians leaving capital cities, but a new trend is emerging with regional residents increasingly bypassing the popular coastal hotspots in favour of more affordable areas further afield.
The December 2025 Regional Movers Index, produced by the Regional Australia Institute using Commonwealth Bank data, shows capital-to-regional migration accounted for 11.6 per cent of all relocations between local government areas – the second-highest share since the end of the pandemic in 2022.
City dwellers moving to regional areas outnumbered those heading the other way by 31 per cent.
The Sunshine Coast and Greater Geelong held their positions as the top two destinations, though both recorded reduced volumes compared to the same period last year.
The Fraser Coast – encompassing Hervey Bay and Maryborough north of the Sunshine Coast – climbed to third place, pushing Lake Macquarie to fourth and Moorabool to fifth.
“We are seeing a trend of capital-city dwellers still choosing popular locations, but regional-to-regional movers looking elsewhere,” RAI CEO Liz Ritchie said.
“Queensland remains popular, but regional movers are going further out from the Sunshine Coast in search of affordability.”
Sydney and Melbourne continue to drive the exodus, accounting for 54 per cent and 38 per cent of net capital outflows respectively.
But Brisbane has now joined the outflow trend.
The city shifted from recording net inflows to net outflows to regional areas.
Perth, meanwhile, moved from being a net recipient of migrants to a balanced position.
“While most city leavers are from Sydney and Melbourne, the other capitals are also seeing outflows,” Ms Ritchie said.
“They might be seeking housing affordability or job opportunities.”
Beyond the established hotspots, smaller areas are attracting attention.
Regional Tasmania, New South Wales, Victoria and Western Australia recorded the strongest annual net growth in percentage terms.
Areas like Meander Valley and Waratah/Wynyard in Tasmania, Indigo in Victoria, Albury in New South Wales, and Gingin in Western Australia all drew new residents.
CBA Regional and Agribusiness Banking Executive General Manager Kylie Allen said the trend signals a maturing migration pattern.
“Strong regional-to-regional movement and rising interest in centres like the Fraser Coast signal a maturing migration pattern, where people are making considered, long-term choices about where they live and work,” Ms Allen said.
Ms Allen said that around a quarter of first home buyers are now purchasing in regional or remote locations, with average loan sizes of $400,000 compared to $507,000 in metropolitan areas.
“We’ve also seen double-digit growth in business lending fundings in regional and agribusiness over the past five years,” Ms Allen said.
“This all adds up to stronger and growing regional economies.”
The RAI continues to push for a National Population Plan and a “40 for the Regions” policy – a 40 per cent allocation for regional Australia across workforce, housing and policy representation.