Business & Economy
Capital-to-Regional Migration in Australia Reaches Record Highs
Capital city residents moving to regional Australia reached equal-record levels in the June 2026 quarter, matching migration peaks from 2021, with outflows from Sydney and Melbourne driving the trend.
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THE PRIMARY BRIEF
- 01 · The primary finding
Capital-to-regional migration in Australia reached equal-record levels in the June 2026 quarter, matching peaks from June 2021, and following a record-high March 2026 quarter.
- 02 · The primary evidence
The Regional Movers Index, a partnership between Commonwealth Bank and the Regional Australia Institute, reported these figures, indicating that capital city residents moving to regional areas outnumbered those moving to cities by approximately 30%.
- 03 · Why it matters
This sustained migration trend impacts regional and metropolitan economies, housing markets, and infrastructure, as people continue to seek country living and potentially more affordable housing options.
Capital city residents moved to regional Australia at an equal-record pace in the June 2026 quarter, matching migration levels seen in June 2021, with approximately 30% more people moving regionally than to cities. This sustained trend follows the March 2026 quarter, which recorded the highest point for capital-to-regional migration since the Regional Movers Index began tracking these movements.
This shift indicates that factors drawing people to regional areas, such as housing affordability and lifestyle, continue to influence population distribution across Australia. The ongoing high rates of movement affect housing markets, infrastructure needs, and labor markets in both metropolitan and regional areas.
What the records show
The Regional Movers Index (RMI), a collaboration between Commonwealth Bank and the Regional Australia Institute, tracks population movements between capital cities and regional Australia. The RMI reported that the June 2026 quarter reached an equal-highest level for capital-to-regional migration on record, mirroring the June 2021 results. This movement was 1.1% higher than the June 2025 quarter. Overall, capital city residents relocating to regional areas outnumbered those moving in the opposite direction by about 30%. Sydney accounted for 52% of capital city outflows, while Melbourne contributed 36% during this period. The Sunshine Coast remained a leading regional destination by share of movers. Northern Queensland Local Government Areas (LGAs), including Burdekin, Tablelands, and Douglas, showed some of the strongest annual growth in net internal migration up to June 2026. Victoria's Central Goldfields was identified as the fastest-growing region nationally in the June 2026 quarter.
The timeline
Data from the Regional Movers Index shows a sustained trend of capital-to-regional migration. The March 2026 quarter marked the RMI's highest point on record for this movement. This record was followed by the June 2026 quarter, which also saw an equal-highest level of capital-to-regional migration, matching figures from June 2021.
What changed and for whom
The continued high levels of capital-to-regional migration suggest a broader and more persistent shift beyond the immediate impacts of the COVID-19 pandemic. Housing affordability is a significant factor for younger Australians considering a move, with median house prices in regional Australia averaging around $770,000 in July 2026, compared to over $1 million in metropolitan areas. Regional average asking rents were about $600 per week, compared to $700 in metropolitan Australia. Regional home buyers are, on average, one year younger than their metropolitan counterparts at age 33. While regional areas offer cheaper housing, incomes are typically lower.
What the subject has said publicly
Liz Ritchie, CEO of the Regional Australia Institute, noted the significance of the June quarter's record result. She stated that movement typically eases in the cooler months, making the sustained high level of migration particularly noteworthy. Ritchie concluded that "the appeal of country living remains incredibly strong all year round".
What we could not confirm
We could not confirm the specific demographic breakdown of movers beyond general age references for home buyers. We also could not confirm the long-term impacts of increased regional populations on local services and infrastructure in newly popular areas.
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