Nearly Half of City-Dwelling Gen Z Residents Eye Regional Move for Better Pay and Lifestyle
A significant demographic shift is on the horizon as almost half of all city-dwelling Gen Z residents are considering a move to regional Australia, according to a recent report from the Regional Australia Institute. The survey highlights that 49 per cent of adults younger than 30 in metropolitan areas are likely to make this tree change, with a salary boost cited as the primary motivation.
Financial and Lifestyle Incentives Drive Urban Exodus
Beyond higher salaries, cheaper cost of living, more affordable housing, and proximity to nature were also listed as major factors encouraging this potential migration. Of the 49 per cent who expressed interest, 23 per cent said they would be ready to relocate within the next year or two, while another 37 per cent plan to move within three to five years. This trend could equate to an urban exodus of approximately 5.3 million people, reshaping Australia's population distribution.
Zoe Gleeson, 23, exemplifies this movement. After living her entire life in Sydney, she moved to Mudgee in the Central West region of NSW with her partner, William Lusty, 28, in late 2024. "We knew we couldn't have the lifestyle we wanted in Sydney — you know, a house with a backyard," Gleeson told 7NEWS.com.au. "We both took jobs that resulted in pay increases as well so, it was a no-brainer, we didn't really lose out in moving to the regions." The couple now owns their own home, complete with a backyard and a pet dog named Barney, enjoying a lifestyle shift that includes shorter commutes and weekend visits to local markets and wineries.
Generational Concerns and Regional Challenges
The report found that all 49 per cent of Gen Z city-dwellers likely to move cited financial incentives, such as recruitment bonuses or relocation payments, as key factors. However, concerns vary across generations:
- Healthcare access was a worry for more than half of all respondents, including 71 per cent of Baby Boomers and 63 per cent of Gen X.
- Millennials were the least concerned about healthcare (37 per cent), telecommunications (24 per cent), and transport options (31 per cent), but more focused on limited job opportunities and potential pay cuts.
Gleeson noted that government incentives for health professionals in regional areas give her confidence that these issues are being addressed. "Although there are challenges, there is an acknowledgment of the challenges," she said.
Personal Stories Highlight Benefits and Drawbacks
Mikaela Carroll, 28, moved from Brisbane to Bunbury in Western Australia during the COVID pandemic and later to Launceston to be closer to family. She cited climate change as a factor, after witnessing flooding in her childhood region. "The natural disasters are just getting more and more volatile," Carroll said. "I didn't want to go through that stress — so climate migration was also a reason." She praised the slower pace, lower cost of living, and increased exposure to nature, which have improved her wellbeing and sense of control over life.
However, isolation from family remains a significant barrier, with 44 per cent of Gen Z respondents listing it as a main drawback. Carroll and her partner combat this by proactively joining local groups, such as soccer and book clubs, to build social connections. "If other people are looking into moving regionally, I'd 100 per cent say to spend the first six to 12 months putting yourself out there — it feels a bit awkward, but the pay back is how much joy it brings," she advised.
Policy Implications and Future Planning
Regional Australia Institute CEO Liz Ritchie emphasized the need for policy makers to prepare for this demographic shift. "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," she said. Ritchie called for investments in regional infrastructure, healthcare, childcare, and education to ensure regional living is not seen as second tier. She also advocated for 40 per cent of homes under the National Housing Accord to be built in regional areas.
The survey revealed that Sydneysiders are the most keen to move (41 per cent), followed by 38 per cent of metropolitan Melbournians, indicating a broad trend across major cities. As more young Australians seek better opportunities and quality of life outside urban centers, this movement could have lasting impacts on Australia's social and economic landscape.
