Capital Outflow Matches Pandemic Peak as Regional Migration Surges in June 2026
Fresh figures reveal that urban residents are relocating to regional parts of the country at a pace not witnessed since the COVID-19 pandemic. According to the Regional Australia Institute (RAI), population movement from major capitals to country areas throughout the June 2026 quarter equaled the peak previously established in June 2021.
Commonwealth Bank data, analyzed by the RAI, shows that those moving to the regions outnumbered those moving to the cities by 30 per cent. Sydney and Melbourne recorded the largest losses of residents. In terms of breakdown, 52 per cent of the net population shift away from Australian cities toward regional areas during the June 2026 quarter stemmed specifically from Sydney.
Sunshine Coast and Greater Geelong Lead Regional Destinations
The Sunshine Coast remained the most favoured region for those leaving capital cities. Across the year leading up to the June 2026 quarter, the Sunshine Coast captured 8.7 per cent of the overall net migration proportion.
Greater Geelong in Victoria trailed the Sunshine Coast with the second-largest share of total net internal migration. For movers already living in regional Australia, Victoria’s Central Goldfields and the New South Wales Snowy Mountains were the most popular.
North Queensland Catches Tropical Influx
Apart from the top-performing markets, the RAI drew attention to substantial expansion across north Queensland over the 12-month period leading to the June 2026 quarter. Situated south of Townsville, the Burdekin region experienced a 238 per cent yearly surge in urban transfugees selecting the district.
Retail operator Candace Young, who moved from Dalby to the Burdekin in 2023, noted a stream of southerners moving to the shire of 17,000 people. Additionally, the Atherton Tablelands area, positioned south of Cairns, welcomed a 131 per cent annual rise in newcomers originating from capital cities.
National Population Plan Proposed to Ease Regional Strain
RAI chief executive Liz Ritchie stated that southern states are feeling the pinch as people measure their lifestyle and what they are hoping for. Ms Ritchie says one in three city dwellers were planning a regional move within five years.
To manage the influx, the RAI is lobbying to establish a national population plan to assist regional planning. Ms Ritchie warned that the organisation continues to under-project population in regional Australia, and regional communities suffer because of that.
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