Since the onset of the pandemic, there’s been a significant shift with many Australians moving from metropolitan to regional areas, driven by a quest for more space and a better quality of life, according to new PropTrack analysis.
While there was a temporary reversal post-pandemic with some returning to urban centers, recent data indicated that the movement to regions is not only persisting but growing, according to Karen Dellow (pictured above), senior data analyst for realestate.com.au.
According to the Regional Australia Institute’s analysis of NAB customer data, relocations to regional areas are now 20% higher than pre-pandemic levels and have slightly increased from the pandemic peak.
Furthermore, those who have already settled in regional locations are choosing to stay put, showing high satisfaction with their living situations, as evidenced by the decrease in inter-regional moves, PropTrack reported.
The high cost of living and property prices in cities are major factors propelling people towards regional areas.
The affordability of larger properties compared to the constrained urban housing market, where many first-time buyers are forced to settle for small apartments, is a significant draw.
Additionally, the rise of hybrid working models allows residents the flexibility to live further from their workplaces, supporting a more balanced lifestyle.
Geelong in Victoria and the Gold Coast in Queensland are prime examples of regions experiencing heightened demand due to their proximity to major cities like Melbourne and Brisbane.
PropTrack data showed that most people moving to regional Queensland and Western Australia are coming from other states rather than from the capitals like Brisbane and Perth.
While regional areas initially offered more affordable living options, their popularity has led to a surge in property prices and rental rates.
November figures showed that the median weekly rent in regional Australia reached $550, up 49% since the pandemic began, contrasting with a 45% increase in the capitals.
Property sales prices in these areas have also seen a 55% rise since early 2020, although they remain $200,000 cheaper on average than in metropolitan areas, PropTrack reported.
The allure of regional living continues to attract a significant number of Australians, facilitated by changes in work habits and the quest for a less congested lifestyle.
Yet, the growing popularity could potentially lead to higher prices and reduced housing stock, challenging the long-term affordability that has been drawing city dwellers away from urban centers.
As Australians increasingly opt for regional over urban living, driven by economic factors and lifestyle preferences, it remains to be seen how these areas will adapt to the rising demand and whether the trend will sustain the pressures of its own success.
Read the PropTrack report here.
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