Regional migration hits record high as Australians keep leaving the capitals

Australians are leaving capital cities in record numbers, with new CommBank data showing the regional migration trend is accelerating.

The latest Regional Movers Index, produced by Commonwealth Bank and the Regional Australia Institute, found capital city residents moving to regional Australia outnumbered those heading the other way by 29.7% in the March 2026 quarter.

This represents the highest level of capital-to-region movement recorded since the index began, up 20% on the previous quarter and 4.7% higher than a year earlier.

Liz Ritchie, chief executive officer at the Regional Australia Institute, said the result showed the appeal of regional living had continued through Covid, inflation, housing pressures and tight labour markets.

“The trend has been remarkably consistent - people are leaving capital cities for regions and they’re doing so at increasing rates,” Ritchie said.

"Australians are continuing to choose regional life in greater numbers, even as economic conditions shift."

Sydney remains the biggest source of capital city outflows, accounting for 55% of net movement from capitals to the regions. Melbourne followed at 36%.

However, the combined share of Sydney and Melbourne was lower than a year ago, with Brisbane, Perth and Adelaide all recording increased shares of outflows, suggesting the shift is becoming more broad-based.

So where's everyone going? Southeast Queensland, it seems. 

The Sunshine Coast maintained its position as the most popular regional destination, taking an 8.8% share of total net migration, although that share eased slightly during the quarter.

Toowoomba, in Queensland's south, was one of the standout movers in the quarter, recording the strongest year-on-year growth in net inflows from capitals of any local government area in Australia, up 236% on the same time last year.

Greater Geelong remained in the top five with a 5.3% share, while Fraser Coast, Moorabool and Lake Macquarie rounded out the leading destinations.

A major economic force

The shift lands as regional Australians are being recognised as a major economic force. The recently released Boomtown Spend Snapshot report found regional Australians contribute $250 billion annually to the national economy and outspend metro consumers across several key categories.

Regional Australia is also considered the nation’s grocery backbone, spending 13% more at the check-out than their metro counterparts, with bigger baskets and fewer trips reflecting planned, household-led shopping. They also significantly over‑index in pet‑related spending.

But despite this rosy economic outlook, investment in regional infrastructure fails to match the migration trend.

Ritchie said the data pointed to the need for governments, investors and communities to respond before growth pressures build.

“We’re not just tracking movement but providing early indications of where regional growth is emerging, so government, investors, industry and communities can respond before pressure builds,” she said.

“It helps identify the places that are emerging as hotspots that may need new thinking around housing and infrastructure.”

Kylie Allen, executive general manager regional and agribusiness banking at CBA, said the result reinforced the long-term strength of regional Australia.

“This is a significant milestone, and the data shows Australians are making long term, considered decisions to build their lives in regional communities,” she said.

Allen said the shift was creating opportunities for regional businesses as populations grow and customer bases become more diverse.

“For many regional businesses, this creates opportunities to respond to a larger and more diverse customer base,” she said.

“We’re seeing that reflected in our business lending, with businesses investing to support larger populations and increased economic activity across their regions.”