Sydney residents are the most likely city dwellers in Australia to move to a regional area, according to new research commissioned by the Regional Australia Institute (RAI).
Forty-one per cent of Sydney residents said they would consider moving regionally. This was above the national average of 37 per cent of metropolitan Aussies with their sights set on leaving a major city.
The cost of living and housing were the two key reasons people were considering a move, explaining the first place ranking of Australia’s most expensive housing market.
More Sydney residents are considering a regional move. Picture: NewsWire/John Appleyard
Sydney’s median house price remained at $1.617m in January, the highest in the country, while the cost of virtually all goods and services became more expensive over the year to December.
Dubbo, 392km northwest of Sydney, was recently revealed to be NSW’s most popular destination for first-home buyers as they seek housing affordability.
The RAI research found that Generation Z (those aged 18 to 29) were now the cohort most likely to be considering a move out of a metro areas, having overtaken Millennials (aged 30-45 years).
Almost half of Gen Z respondents (49 per cent) said they were contemplating relocating.
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Dubbo, in regional NSW, was recently revealed to be the state’s biggest FHB hotspot.
RAI chief executive Liz Ritchie said the new Australian dream was now set in the regions, as a demographic shift was on the horizon.
“The cliche is that older metro-dwellers look to the regions when they retire, but in fact the desire for the younger cohort to make the shift from our cities is increasing,” she said.
“This is a wake-up call for employers and policy makers.
“Young people are not just chasing a tree change, they’re looking for career opportunities, lifestyle benefits, and communities where they can thrive.”
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Regional Australia Institute CEO Liz Ritchie. Picture: Bill Conroy
The market research, commissioned by the RAI and undertaken by YouGov, has revealed that almost two-thirds (61 per cent) of Gen Z city workers said a salary increase was the number one factor that would persuade them to take a job outside metropolitan Australia.
Other financial incentives, such as a relocation payment (49 per cent) and faster career progression (45 per cent) rounded out the top three factors this cohort were chasing when considering a regional career.
“Interestingly, Generation Z are also seeking flexible working arrangements, along with help gaining skills and training, suggesting these movers are keen to learn and get ahead, but also achieve a positive work/life balance,” Ms Ritchie said.
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Gen Z have overtaken Millenials as the generation most likely to make a regional move. Picture: iStock
When it comes to barriers to moving regionally, RAI’s research shows a clear shift in attitudes in the last five years.
Concerns about limited job opportunities, previously the biggest barrier to movement, have dropped from 55 per cent in 2020 to 27 per cent in December 2025.
ViewJobs founder Lewis Romano said regional markets were actively seeking skilled and motivated workers.
“Regional employers are competing hard for talent, particularly across healthcare, education, trades and community services,” he said.
“We’re seeing strong salary growth and faster career progression in many regional markets compared to metropolitan equivalents, which is a powerful drawcard for younger workers considering the move.”
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Port Macquarie is also a popular regional destination for first home buyers.
Fear of isolation from family and friends was now the main barrier to moving for younger people was (44 per cent of Gen Z), while older generations were concerned about access to health care (71 per cent of Baby Boomers).
Gender also plays a part; 41 per cent of men were likely to move, while only 33 per cent of women indicated the same.
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CITY DWELLERS CONSIDERING A MOVE TO REGIONAL AUSTRALIA
| GENERATION (per cent) | |||||
| Total | Gen Z | Millennial | Gen X | Baby Boomers | |
| Likely to move | 37 | 49 | 41 | 37 | 25 |
| Unlikely to move | 51 | 34 | 48 | 52 | 64 |
Data below pertains to those who indiciatred they were considering a move:
| Pull factors attracting movers to regional Australia | |||||
| Cheaper cost of living | 43 | 52 | 41 | 42 | 41 |
| More affordable Housing | 43 | 50 | 39 | 45 | 42 |
| More green space/closer to nature | 35 | 36 | 34 | 34 | 38 |
| A stronger sense of community | 30 | 36 | 26 | 30 | 29 |
| Sense of space | 28 | 24 | 24 | 31 | 34 |
SOURCE: YouGov/RAI.
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