Regional value: debunking myths about Australian spending

The long-held belief is that the big money lives in Australia’s big cities. In 2026, the data tells a different story. A new report shows where the big value is and why brands ignoring the regional consumer are missing a major opportunity.

A demographic shift is driving the rise of Australia’s regional cities and is reflected in increased spending power, with regional consumers outspending their metropolitan counterparts in many categories and leading national growth in key sectors.

Research for Boomtown conducted by CommBank iQ analysed the anonymised transaction data of 17 million Australians for January to December 2025. The findings revealed that regional Australia, which makes up one-third of the economy, boasts an annual spending power of $250 billion across 30 measured categories.

“Regional Australia is an increasingly important opportunity for retailers and brands,” says Francesca Ryan, Marketing Lead at Boomtown, a collaborative marketing venture between leading regional media organisations, that helps brands reach regional audiences at scale.

“The report has quantified that and shown that for brands looking for growth, regional Australia is the opportunity they can't afford to ignore.”

“Regional Australia is an increasingly important opportunity for retailers and brands. The report has quantified that and shown that for brands looking for growth, regional Australia is the opportunity they can't afford to ignore.”
– Francesca Ryan, Marketing Lead, Boomtown

CommBank iQ data highlights that one-third of the nation’s economy represents significant value. In many key categories, regional Australia is the most valuable third in terms of overall spending, while in others, it matches metro spending dollar-for-dollar.

The past decade has seen a significant and sustained population drift from metropolitan Australia to regional areas.

With the pandemic acting as an important catalyst, working-from-home, fly-in, fly-out arrangements and more local employment opportunities have all combined with high capital city house prices to drive many younger people, often with families, to the regions. There, they can better afford to purchase a home while still maintaining their metropolitan incomes through remote working or occasional commuting to organisational headquarters in capital cities.

With home price values diverging more across regions, movers to regional areas are often drawn by the opportunity to prioritise the lifestyle and leisure activities that matter most to them — the very things that attracted them to the regions in the first place.

“COVID was a tough time for everyone, but it really did accelerate regional migration,” says Ryan. “A lot of people thought, ‘If I can work remotely, or access new employment opportunities, why would I not do it somewhere that’s potentially more cost-effective for my family and offers a better quality of life?’

“We’ve seen that continue, and it’s really driven by millennials, people who are starting families or have young kids and want more space and an improved lifestyle at a better price.”

“COVID was a tough time for everyone, but it really did accelerate regional migration… We’ve seen that continue and it’s really driven by millennials, people who are starting families or have young kids and who want more space at a better price.”
– Francesca Ryan, Marketing Lead, Boomtown

Millennials driving growth

These demographic shifts are reflected in the Boomtown research, which showed the new reality of regional Australia and, in particular, the higher spending power of people in the 24–44 year-old regional demographic across key categories.

Regional Australians, for example, spend an average 38% more on outdoor and active lifestyle activities compared with their capital city counterparts.

“It’s an Australian characteristic to pursue lifestyle and regional audiences are really doubling down on that,” says Ryan. “Inspired by where they live, we see that their spending on recreational goods and hobbies is significantly higher.”

CommBank iQ data shows that due to greater distances, regional consumers also spend 28% more per capita in the automotive category. Furthermore, larger living spaces and more time spent at home translate to a 53% higher per capita spend on hardware and garden items.

In regional NSW, the difference is even wider, with regional consumers spending an annual average of $1,000 per year on their homes; almost double the amount spent in this category in Sydney. Regional Australia is also the grocery engine of the nation, accounting for $56.2 billion in spending and a 13% higher per capita spend than in the capitals.

Regional consumers spend more on their pets, too – a sector that has grown by more than 30% nationally since 2022.

Those are big numbers. And they offer huge opportunities for brands when it comes to marketing.

The report also dives into spending in the states and territories, with regional Queensland emerging as the biggest market. Around 50% of the Queensland population is based in the regions, and the spending power is a combined $76.2 billion annually.

Next is regional NSW, which is home to 34% of the population and where the combined annual spend is $73.7 billion. 

Correcting misconceptions

“There have been a set of misconceptions about people in rural and regional Australia and the way they spend,” says Ryan. “This report validates that regional Aussies are more like their metropolitan counterparts than they are different from them. They still want to go on holiday, they still want a new car, they’re happy to spend on a jet ski or on home improvements, and as the data shows, compared to those in the capital cities, in many cases, that spending is higher. The data validates that and gives some clear insight.”

No surprise then, that regional spend matches metro spend across health (including health insurance and pharmacy purchases), retail and domestic services such as telecommunications and energy.

CommBank iQ data disproves another misconception: that regional consumers are not as digitally engaged as those in the cities. Research shows that digital streaming services are enjoying 18% year-on-year growth in the regions, with the 25–44 year-old age bracket leading the way.

Reflecting their digital engagement, the report also shows that growth in travel agents and online bookings is running at 17% year-on-year in the regions, 2% higher than among metropolitan consumers.

For brands that don’t have a physical presence in regional areas, this makes online shopping and online payments an imperative, backed by a reliable delivery service.

CommBank iQ transaction data also reveals that regional consumers are travelling extensively, taking more trips and spending more on accommodation within Australia. Per capita spend has grown 17% year on year and regional online bookings and travel agent spend comprises 31% of total national spend.

In the cruise industry, regional consumers comprise an outsized 41% of the national category spend and their spend continues to grow, while the metropolitan market is contracting.

A call to action

For Ryan, the report is a call to action for brands that may have been focusing too narrowly on metropolitan consumers and aren’t considering the shifting profile of consumers in the regions in their marketing plans. This can mean increasing advertising spend through local media such as regional radio and mastheads, which still maintain an important footprint and audience, or even sponsoring local events and sporting teams.

“At the moment, 37% of the Australian population lives regionally, but only around 18% of the national advertising and marketing spend is directed to those regional markets,” she says.

“So, there’s a real gap, and it’s an opportunity for brands to see the value of that audience and reap the rewards.”

“At the moment 37% of the Australian population lives regionally, but only around 18% of the national advertising and marketing spend is directed to those regional markets. So, there’s a real gap, and it’s an opportunity for brands to see the value of that audience and reap the rewards.”
– Francesca Ryan, Marketing Lead, Boomtown