Regional Australia Booms as Record Numbers Leave Capital Cities Behind
Australia’s love affair with regional living has reached a new milestone, with more people than ever before choosing to swap the hustle of the nation’s capital cities for the lifestyle, affordability and opportunities offered by regional communities.
The latest Regional Movers Index (RMI), released by the Commonwealth Bank of Australia (CBA) and the Regional Australia Institute (RAI), reveals that the March 2026 quarter recorded the strongest shift towards regional Australia since the index began.
The report found Australians moving from capital cities to regional areas outnumbered those making the journey in reverse by 29.7 per cent, highlighting a long-term trend that continues to reshape the nation’s population and economy.
The March quarter result represented a 20.1 per cent increase compared with the December 2025 quarter and was 4.7 per cent higher than the same period a year earlier, reinforcing that regional migration remains well beyond a post-pandemic phenomenon.
Sydneysiders Lead the Regional Exodus
Sydney continues to account for the largest share of Australians relocating to regional areas, representing 55 per cent of all net departures from capital cities during the quarter.
Melbourne followed with 36 per cent of net outflows, although both cities’ combined share has eased slightly over the past year as increasing numbers of residents from Brisbane, Perth and Adelaide also embrace regional living.
The figures suggest the desire to relocate is becoming more widespread across Australia rather than being concentrated in the nation’s two largest cities.
Regional Australia Institute Chief Executive Officer Liz Ritchie said the latest figures confirmed that regional Australia had become a permanent destination of choice for many Australians.
She said the movement had remained remarkably resilient through COVID-19, rising inflation, housing affordability pressures and changing labour markets, demonstrating that people were making considered, long-term lifestyle decisions rather than short-term moves.
Ms Ritchie said the record migration figures reinforced the need for governments to adopt a coordinated national approach to planning for population growth, ensuring housing, infrastructure and essential services keep pace with increasing demand.
Sunshine Coast Still Australia’s Favourite
Queensland’s Sunshine Coast retained its position as Australia’s most popular regional destination, attracting 8.8 per cent of total net migration despite a slight decline from previous quarters.
Greater Geelong remained among the country’s leading destinations, accounting for 5.3 per cent of net migration, while the Fraser Coast, Moorabool in Victoria and Lake Macquarie in New South Wales rounded out the top five.
However, the report shows growth is becoming far more geographically diverse.
Regional hotspots are now emerging across nearly every Australian state, with communities such as Toowoomba, Broome, Townsville, Mid-Coast NSW, Meander Valley in Tasmania, Douglas in Far North Queensland and Central Goldfields in Victoria all recording significant increases in new residents.
Toowoomba Emerges as a Standout
One of the strongest performers was Toowoomba, which recorded the largest year-on-year increase in net migration from Australia’s capital cities of any local government area in the country.
The Queensland regional centre has become an increasingly attractive destination thanks to its growing economy, employment opportunities, expanding education sector and comparatively affordable housing.
Importantly, Toowoomba is also attracting people relocating from other regional communities, highlighting its emergence as a major inland service hub supporting surrounding districts.
Economic Benefits Flow to Regional Communities
The continued population shift is also delivering significant economic benefits for regional Australia.
Commonwealth Bank Regional and Agribusiness Banking Executive General Manager Kylie Allen said the migration figures reflected Australians making long-term commitments to regional communities.
She said growing populations were creating opportunities for local businesses, with increasing demand for housing, retail, hospitality, healthcare, education and professional services.
Ms Allen said the trend was already being reflected in increased business lending, as companies expand operations and invest to meet the needs of larger and more diverse regional populations.
Planning for Future Growth
The Regional Movers Index also provides governments, councils and investors with valuable early warning of where infrastructure and housing demand is likely to increase.
With more Australians continuing to choose life beyond the major capitals, the report suggests regional Australia will play an increasingly important role in the nation’s economic growth, employment and population planning over the coming decade.
As regional centres continue to expand, investment in roads, healthcare, schools, housing and essential services will be critical to ensuring communities can accommodate new residents while maintaining the lifestyle that continues to attract Australians away from the nation’s largest cities.
