Australians continue to swap city skylines for regional horizons, with relocations from capitals to regions outpacing moves in the opposite direction by more than one-third (36%), according to the latest Regional Movers Index (RMI).
While Queensland's Sunshine Coast retained its position as Australia's most popular destination with the largest share of net internal migration, Regional Australia Institute (RAI) CEO Liz Ritchie said an increasing number of Australians are opting for cooler climates with Victorian and Tasmanian regions recording upticks in annual migration growth.
"We are seeing interesting moves in the southern states with Victoria's Wodonga seeing the strongest annual net migration growth, while three Tassie spots - Latrobe, Devonport and Huon Valley - ranked second to fourth. Grouped together, these areas saw a five-fold increase in net migration over 12 months. Another Victorian local government area (LGA), Colac-Otway, rounded out the top five."
The RMI, a partnership between the RAI and Commonwealth Bank of Australia (CBA), reveals:
- City-to-region migration remains strong: Capital-to-regional moves accounted for 11.5% of all major relocations, outstripping moves in the opposite direction (8.4%).
- Net migration to regions up 11.8%: Regional Australia gained thousands more residents, marking one of the highest levels of regional relocations since the COVID-19 pandemic.
- Sydney and Melbourne lead the move: Sydneysiders made up 53% of net outflows, followed by Melburnians 33%, while Adelaide and Perth also recorded significant jumps.
Top spots stay popular
Ritchie said these ongoing trends would benefit the regions already experiencing significant growth, including those that have consistently claimed the lion's share of migration.
"We continue to see the usual regions experiencing the largest net internal migration in the year to September 2025. The perennially popular top three spots: the Sunshine Coast with 8.8 per cent of total net internal migration to regions, Greater Geelong (7.7 per cent) and Lake Macquarie (4.1 per cent) all feature, with Fraser Coast (3.6 per cent) and Moorabool (3.5 per cent) in a battle for fourth and fifth favourite.
"Capital city people make up the bulk of the net migration to most of these regions. And interestingly, the Fraser Coast stands out for broad appeal for both city folks and regional movers. Its net migration comes from both these sources quite evenly."
Ritchie said while most city movers are coming from Sydney and Melbourne, there were some interesting developments in Western Australia.
"Perth has gone from receiving net inflows to seeing a net outflow with 3 per cent of the share of total city movers, reversing a previous trend," she said.
"Regional WA is also attracting more movers, with its share of net inflows rising to 10 per cent in the September quarter, up from 6 per cent the previous year. Broome, Gingin and East Pilbara LGAs in Western Australia all feature among the growing destinations for capital city movers to regions."
CBA Executive General Manager Regional and Agribusiness Banking Kylie Allen said while the Sunshine Coast and Greater Geelong remain popular in terms of share of migration, North-West Tasmania was becoming a magnet for opportunity and lifestyle.
"North-West Tasmania is positioning itself as a growth region, with ongoing investment in infrastructure upgrades and economic development initiatives," she said.
"Coupled with a strong base of established industries, particularly the agriculture sector, its strategic port position, and easy access to Tasmania's stunning landscapes, the region is an increasingly compelling place to work, live and invest."
Momentum in regional Victoria
Allen said similar momentum is evident in regional Victoria.
"Wodonga and neighbouring Albury are seeing investment and infrastructure developments across transport, education, health and defence, creating jobs and strengthening the local economy. We've seen our own business customers benefit from an uplift in trade due to the inflow of new residents, and other businesses pivot and diversify into different areas to meet new demand.
"While the outlook is positive, attracting and retaining skilled professionals remains a challenge across regional areas. Even with a growing population, some sectors remain under pressure. Continued investment in training and upskilling will be key to meeting demand."
The RMI, a partnership between RAI and CBA, provides vital and timely insights into migration trends and supports decision-making across sectors.
Access the latest September Quarter report here .
