Metro movers have itchy feet

The latest Regional Movers Index, released by the Regional Australia Institute (RAI) last week, identified Boddington, Northam and Geraldton as hotspots for incoming migration from the city.

Sydney-siders continued to lead the exodus out to the regions at 65 per cent of national movements, which was down from 73pc the previous year.

But WA emerged as home to some of the nation's fastest growing regional local government areas (LGA) in the December quarter, according to the Regional Movers Index report.

The west had three of the top five growth hotspot positions for 2023, as measured by annual growth in net internal migration inflows.

Boddington, in the Peel region, recorded the highest annual growth in net internal migration inflows, with a three-fold increase on the back of its popularity among city movers.

Geraldton had the highest growth in the December quarter and it was the only LGA to have made the top five previously.

Bridgetown-Greenbushes was also in the top five nationally for the year to December 2023.

RAI chief economist Kim Houghton said regional WA was gaining in popularity, especially with metropolitan movers.

"But, as we have a net flow from the cities to our regions, governments have been caught on the hop in terms of providing social and other infrastructure," Dr Houghton said.

He said many regional areas were feeling the pinch of not having enough infrastructure to cope with the inflows from the cities.

Dr Houghton said across the nation, coastal areas remained popular, but inland LGAs in WA were doing well in terms of population inflow.

"We are seeing continual emergence of new places seeing high growth, especially away from the city," he said.

"Most of our State governments are investing in growth on the city fringes, but they needed to look further afield to inland centres.

"Housing is especially tight in the regions.

"We want more funding to go into housing, which is a long running constraint on economic growth nationally.

"There is no problem in the regions in terms of land availability, but banks see them as high risk and we need to turn that around so there is more lending for house builds in the regions."

RAI chief executive officer Liz Ritchie said the lure of regional living remained strong, with 25pc more people moving from the city to the regions than back in the opposite direction during last year.

"Regional Australia offers something more for many people, especially those from big cities," Ms Ritchie said.

"There is more space, more time and more affordability."

Ms Ritchie said the shift away from capital city living had been underway for a decade.

"It was definitely super-charged by COVID," she said.

"But this latest data proves the regions are still very desirable for a significant proportion of the population."

In the past 12 months, Ms Ritchie said the Shire of Boddington had seen a 219pc increase in net internal migration - with more than 70pc of the movers made up of millennials and generation Xers and almost all of those relocating to the area were from Perth.

Meanwhile, in Northam, there has been an almost 93pc increase in net capital to regional migration.

"Metro movers have developed a definite sweet spot for the regions in the west," Ms Ritchie said.

"After historically high levels of movement across Australia in the past year, the December quarter saw the total number of people both regionally and city-based relocating, drop.

"This is attributed to the typical seasonal trend of reduced mobility in the last three months of the year, and the uncertainty that 2023 delivered through repeated interest rate rises and high property prices.

"Despite this, capital to regional migration remains 2.1pc above the pre-COVID average."

Commonwealth Bank regional and agribusiness banking executive general manager Paul Fowler said the lure of the regions nationally and in WA remained strong.

"This is an exciting demographic shift supporting the regions," Mr Fowler said.

"It is driven by continued strong employment opportunities in the regions, affordability and the wonderful lifestyles that our regions present in terms of amenities and open space.

"All of these trends have been sustained over several years and we don't see them shifting in the short-term."

Mr Fowler said overall levels of movements of people had flattened during the December quarter, but that was expected at that time of year.

He said the Sunshine Coast, Queensland, was a stand-out performer in the December quarter for attracting city dwellers.

"There are consistent growth hotspots nationally and it is exciting to see them benefit from regional migration trends," he said.

"WA continues to attract more Australians, both to the city of Perth and into the regions.

"In the WA regions, Boddington, Bridgetown and Geraldton have seen strong growth due to good economic conditions, especially in agricultural industries.

"WA's economy is strengthening beyond traditional resources, with wholesale trade, construction, professional services and agribusiness coming to the fore.

"Now we'd love to see some rainfall in the west and we are hopeful of conditions remaining positive."

Mr Fowler said it was in the nation's best interest for regions to fulfil their economic potential and the prosperity that they were set up to pursue.

With a growing population, he said it was important for governments to invest in the regions to ensure there were enough houses and health infrastructure to support those people moving there.