Beyond cheaper housing: why regional Australia is offering young Australians more than a lifestyle change

Regional Australia has long offered younger Australians something increasingly difficult to find in the biggest cities: a more affordable path into the housing market.

But housing may no longer be the only part of the equation.

Regional employment has expanded across a more diverse range of industries in recent years, while regional labour markets have broadly closed the gap with their metropolitan counterparts.

Healthcare has been a major driver of regional employment growth, alongside education, public administration and professional services. Utilities employment has recorded the strongest growth since 2019, rising around 40 per cent, with renewable energy projects in regional areas likely contributing to the increase.

For a younger Australian weighing up where to live, work and eventually buy a home, CommBank economist Harry Ottley said the shift has changed part of the economic equation.

“Overall, though, the data suggests that regional labour markets have broadly closed the gap to their metro counterparts, with unemployment rates in regional Australia lower than in the capital cities since Covid.”

More Australians are looking beyond the capitals

The jobs story sits alongside continued movement away from Australia's biggest cities.

The CommBank Regional Movers Index recently recorded its highest level of capital-to-regional migration on record, with capital-to-regional movers outnumbering those heading in the opposite direction by around 30 per cent.

For younger Australians, housing affordability is one factor that can make that move attractive.

Ottley said the persistence of the broader migration trend beyond the pandemic suggests there may be more behind it than a temporary lifestyle shift.

“While there was certainly a pickup during Covid, the momentum has continued, with the Regional Movers Index having picked up again recently, implying that some of this lure is actually structural in the economy.”

Could regional Australia offer an easier path to a first home?

For younger Australians thinking about home ownership, the difference in property prices is significant.

As of July 2026, Cotality put the median house price in regional Australia at around $770,000, compared with just over $1 million in metro areas. Asking rents averaged around $600 a week regionally compared with $700 in metropolitan Australia.

CommBank's internal home lending data provides another interesting clue.

Regional home buyers are 33 on average, one year younger than their metropolitan counterparts. In NSW, Orange and Dubbo also featured among the top five locations for first home buyers in 2025.

But a cheaper property doesn't automatically mean a proportionately more affordable lifestyle.

“So, whilst housing is typically cheaper in regional areas, income is also usually a little bit lower. So, the affordability difference is not as large as it might seem at face value,” Ottley said.

“But even speaking broadly, housing and rents are typically more affordable in regional areas than in the cities,” Ottley said.

The regional trade-off

Cheaper housing is only one part of the cost equation for younger Australians considering a move outside the capitals.

Living further from major centres can mean travelling greater distances for work, everyday needs and essential services.

Transport costs can also eat into the regional affordability advantage. According to the Australian Automobile Association, in the June quarter of 2026, transport accounted for 15.7 per cent of income for benchmark regional households, edging above the 15.5 per cent average for capital-city households for the first time since the index began tracking regional locations in 2017.

For some regional communities, distance can also affect access to services that people living in metropolitan areas may have closer to home.

Ottley said this could create costs beyond the everyday commute.

“There's also the added cost of a lot of regional areas not being well serviced by critical services, meaning a lot of travel to metro areas for health and other service delivery.”

For younger Australians, then, comparing metro and regional living isn't as simple as putting two house prices side by side. Employment opportunities, income, transport and access to services all form part of the calculation.

More than a cheaper place to live

That's what makes the changing employment picture particularly relevant.

For a younger Australian deciding where to establish a career, buy a first home or put down roots, regional Australia increasingly offers something beyond a housing discount.

And while regional economies vary considerably across the country, the growth of sectors such as healthcare, education, professional services and utilities is broadening the types of opportunities available outside the capitals.

Ottley said that combination remains central to regional Australia's appeal.

“Regional Australia offers generally more affordable lifestyle and increasingly has a more diverse range of employment opportunities, meaning it remains a strong draw for the rest of Australia,” he said.