Sydney Loses More Residents Than Melbourne To Coastal And Regional Areas

Sydney is experiencing a record outflow of residents, with tens of thousands moving to coastal and regional areas each year. New figures show that around 33,000 people left the city in the 2024–25 financial year, marking the largest domestic population loss among Australian capital cities.

According to the Australian Bureau of Statistics, 8500 departed Melbourne over the same period.

Many are relocating to regional New South Wales and Queensland, including areas such as Lake Macquarie, the Fraser Coast, and the Sunshine Coast. The moves are largely motivated by housing affordability, with Sydney’s median house prices remaining some of the highest in the country. Young families and first-home buyers, in particular, are finding it increasingly difficult to enter the market, prompting many to look for alternatives outside the city. Lifestyle factors and the rise of remote work are also influencing decisions, allowing people to prioritise space, lower living costs, and a slower pace of life.

Despite the domestic exodus, Sydney’s overall population continues to grow. Around 78,000 international arrivals during the same period offset the number of people leaving, creating what experts describe as a “revolving door” effect, where new arrivals replace departing residents. This trend reflects the city’s ongoing appeal as a global destination for work, study, and migration, even as local affordability challenges persist.

Regional centres are seeing more diverse inflows than in previous years. While the Sunshine Coast remains a popular choice, towns such as Lake Macquarie and the Fraser Coast are attracting a growing share of relocations. This indicates a long-term shift rather than a temporary trend, as Australians increasingly balance lifestyle priorities with economic pressures.

“While most city leavers are from Sydney and Melbourne, the other capitals are also seeing outflows,” said Regional Australia Institute chief executive Liz Ritchie to News.com.

“We are seeing a trend of capital-city dwellers still choosing popular locations, but regional-to-regional movers looking elsewhere,” Ms Ritchie said.

“They might be seeking housing affordability or job opportunities. What hasn’t declined is interest in a regional move.”