A record number of Australians are moving from capital cities to regional areas, according to the March quarter 2026 Regional Movers Index (RMI), a joint report by the Commonwealth Bank and the Regional Australia Institute (RAI). The trend is driven by factors including housing affordability, lifestyle preferences, and the increased viability of remote work.
Key Migration Data
The RMI recorded a 29.7% net outflow from capital cities to regional areas in the March quarter, described as the highest level since the index began. This figure represents a 20.1% increase from the December 2025 quarter and a 4.7% increase from the same period a year earlier.
- Source Cities: Sydney accounted for 55% of the net outflows, with Melbourne contributing 36%.
- Inflow Decline: Data shows that since 2023, the number of people moving from regional areas to capital cities has decreased by 18%.
"The net outflow from capitals to regions has reached its highest level since the index began."
Top Migration Destinations
The RMI data identified the following locations as having the highest share of net internal migration from capital cities:
- Sunshine Coast, QLD — 8.8%
- Greater Geelong, Vic — 5.3%
- Fraser Coast, QLD — 3.9%
- Moorabool, Vic — 3.5%
- Lake Macquarie, NSW — 3.4%
Fastest-Growing Towns by Migration Rate
The RMI report also identified locations that experienced the highest percentage growth in net internal migration over a 12-month period:
- Wodonga, Vic — 973%
- Latrobe, Tas — 842%
- Devonport, Tas — 412%
- Huon Valley, Tas — 380%
- Colac-Otway, Vic — 375%
Liz Ritchie, CEO of the RAI, noted substantial migration growth in southern states, with areas such as Wodonga, Latrobe, Devonport, and Huon Valley experiencing a five-fold increase in net migration over the period.
Industry Observations
Westpac's Home Ownership Report indicates that three out of 10 Australians are planning to rent, buy, or invest in properties outside capital cities. The bank identified Geraldton in Western Australia as a location with the largest increase in home lending among those moving to regions.
Context and Drivers
Analysts observe that traditional trade-offs associated with regional living, such as access to healthcare, schools, and shopping, have narrowed, with many regional centers now providing essential services and proximity to airports. The growing viability of remote work is cited as a factor enabling individuals and families to relocate.
One family who moved from Sydney to the Gold Coast cited a desire for a "slower lifestyle" and reduced travel times, with a daily commute decreasing from three hours to 15 minutes.
"We wanted a slower lifestyle and less time in traffic—now our commute is just 15 minutes."