Regional Australia continues to attract metro movers amid
national slowdown

*Please note some data points have been updated since original publication. 

Regional Australia remains a strong draw for city dwellers, with 32 per cent more people relocating from capital cities to regional areas than vice versa, according to the June Quarter Regional Mover Index (RMI). 

Top-performing growth centres such as Albury (NSW) Townsville (QLD), and Greater Bendigo (VIC) are attracting new capital city residents with their affordability, lifestyle, and opportunities. After taking the lead in the March quarter for top LGA by share of net capital -regional migration, Greater Geelong has slipped back to second place. The Sunshine Coast returned to the number one spot for net migration to Australia’s regions in the year to June 2025.

“Across Australia, this quarterly report shows an overall downturn in movement across the country of 9.4 per cent, which includes capital to capital relocation. However, regional Australia is no longer a second choice – it’s the smart choice. From career opportunities to community connection, the regions are delivering,” said Liz Ritchie, CEO of the Regional Australia Institute (RAI).

Queensland maintains its position as a leading destination for internal migration, boosting its share of net movement from capital cities to regional areas from 19 per cent in June 2024 quarter to 28 per cent in June 2025 quarter, now second only to New South Wales at 32 per cent. Tasmania also reversed its net outflows, recording a 3per cent net inflow to regional areas.

The East Pilbara region in WA led growth hotspots with a 511   per cent annual increase in migration, followed by Murrindindi (VIC), Hinchinbrook (QLD), Lithgow (NSW), and Albury (NSW). Albury saw an incredible 17-fold increase in net migration from capitals in the year to June 2025.

“Albury and neighbouring Wodonga offer exceptional lifestyle and economic opportunities attracting both business investment and workers choosing to relocate there,” said Kylie Allen, Executive General Manager Regional and Agribusiness Banking at CBA. 

“With more affordable land in close proximity to major cities and airports, a range of major employers based there that are continuing to recruit, educational institutions and many lifestyle benefits, it’s no surprise to see how these regions are thriving.

“Albury and Wodonga are an example of how successful regions have a mix of good infrastructure, employment opportunities, available housing and lifestyle benefits to attract the many Australians who want to leave the cities for a tree change,” Ms Allen said. “It’s exciting to see how many regional businesses, and large employers, are looking for ways to create opportunity in regional Australia to create prosperity in their communities and drive growth.” 

The Australian Government has committed $7 million to three new projects in Albury-Wodonga, including the Oddies Creek Splash Park, Wodonga Creek precinct, and the Advanced Manufacturing Centre of Excellence.

One company aiming to take advantage of the opportunities in Albury is Beechworth Bakery. Founded in 1984, the business has grown into a regional icon with eight locations across Victoria and New South Wales, employing around 300 staff. Managing Director Marty Matassoni says CBA has played a key role in expanding the business, including the opening of a store in Echuca.

“We’ve banked with the CBA for 40 years and they’ve played an important part in our expansion. All our growth has been funded by the bank and the CBA team in Albury have continued to support us and believe in our plans. They have provided strategic guidance and I keep coming back to CBA because they understand me and what our needs are,” said Matassoni.

In a vote of confidence in the region, Matassoni has recently renewed Beechworth Bakery’s 5-year lease in Albury.

“This quarter’s findings underscore the critical role regional centres play in shaping Australia’s future. However, with housing pressures mounting in regions, affordability is waning, and RAI has provided policy solutions to support growth in the regional housing market,” said Liz Ritchie. 

“RAI’s recent report, Answering the Call for Regional Housing, has recommended the appointment of a Regional Housing Commissioner and for 40 per cent of the National Housing Accord’s 1.2 million homes (480,000) to be built in regions.” 

The RMI, a partnership between RAI and CBA, provides vital insights into migration trends and supports decision-making across sectors.