Tropics attract city dwellers in regional migration trend

City dwellers are moving to regional Australia at rates not seen since the COVID pandemic, according to new data.

The movement of people out of Sydney and Melbourne is captured in data from Commonwealth Bank, which the Regional Australia Institute (RAI) has analysed to track migration trends.

The not-for-profit organisation said migration from capital cities to regional Australia during the June 2026 quarter matched the record set in June 2021.

Those moving to the regions outnumbered those moving to the cities by 30 per cent, and Sydney and Melbourne recorded the largest losses of residents. 

The Sunshine Coast remained the most favoured region for those leaving capital cities, followed by Greater Geelong in Victoria.

In the 12 months to the June 2026 quarter, the Sunshine Coast received 8.7 per cent of total net migration share.

Victoria's Central Goldfields and the New South Wales Snowy Mountains were the most popular for movers already living in regional Australia.

Beyond the stand-out markets, the RAI highlighted significant growth in north Queensland in the 12 months to the June 2026 quarter. 

Tropical takeover

The sugarcane and horticultural mecca of the Burdekin, south of Townsville, saw a 238 per cent annual increase in the number of city movers choosing the region. 

Retail operator Candace Young moved from Dalby to the Burdekin in 2023.

She said since the move, she had noticed a stream of southerners moving to the shire of 17,000 people. 

"We are getting a lot of city people coming up here, customers coming to the shop who have moved from Victoria or Tasmania," she said.

"Here, you can drive five minutes in any direction and take the kids fishing or camping, and those things are free activities.

The Atherton Tablelands region, south of Cairns, received a 131 per cent annual increase in residents from capital cities. 

'A good-news story'

RAI chief executive Liz Ritchie said the latest quarterly data showed people still wanted to move to regional Australia in droves, years after the pandemic-inspired tree and sea changes. 

"It is those southern states that are really feeling the pinch in terms of how people are measuring their lifestyle and what they're hoping for," she said.

"It is a good-news story for Queensland."

Ms Ritchie said the RAI was lobbying to establish a national population plan to assist regional planning.

"We continue to under-project population in regional Australia, and our regional communities suffer because of that," she said. 

"People on the ground know when their town is growing, and they know when they're feeling the pinch."