March 2026 – 3 minute read

What's in this insight:

• How many Australians are considering regional moves
• What’s driving interest in regional living
• Key concerns for people looking beyond the capitals
• Where regional lending activity is growing
• Tips for buyers considering a regional move

Fast facts

• >25% of Australians are planning to buy, invest or rent in a regional area
• 1 in 3 Australians have consistently considered a move outside the capital cities year-on-year
• 34% cite lower cost of living and 33% point to more affordable house prices as the main reasons for a regional move
• 32% say the biggest concern is distance from healthcare and schools

Regional interest remains consistent

Between January 2024 and October 2025, the share of Australians considering a move to regional areas remained steady at around three in 10. Over the same period, the number of people planning to purchase in a capital city increased to 55%, reinforcing that capital cities remain the primary focus for most buyers.

However, the continued level of regional interest suggests Australians are actively weighing their options, balancing affordability and lifestyle with access to essential services and employment.

What’s driving interest in regional areas

Affordability remains the strongest motivator for Australians considering a regional move. Lower cost of living (34%) and more affordable house prices (33%) top the list, reflecting ongoing pressure on household budgets in many capital cities.

Lifestyle considerations also play an important role. More than one quarter (28%) are attracted to less populated environments, while a desire for more space and proximity to nature (both 24%) highlights the appeal of regional living beyond cost alone.

Together, these factors point to a pragmatic mix of financial and lifestyle priorities shaping regional intentions.

Concerns buyers are weighing up

While interest remains strong, many Australians considering a regional move also report concerns.

Two thirds of those planning a regional move say they have reservations. The most common concern is distance from key facilities such as healthcare and schools (32%), followed by being further away from family and friends (27%).

Employment opportunities (23%) and fewer entertainment options (23%) are also important considerations. Among Gen Z, concern about limited entertainment options rises to 39%, highlighting generational differences in how regional trade offs are perceived.

Regional areas showing lending growth

Westpac data shows home lending growth across a range of regional areas, reflecting continued demand outside capital cities.

Westpac’s top regional home lending growth areas include:

• Geraldton, WA (6530)
• Lake Macquarie – east, NSW (2280)
• Townsville, QLD (4814, 4817)
• Boroondara, VIC (3123)
• Wangaratta, VIC (3677)
• Bundaberg, QLD (4670)
• Tweed Valley, NSW (2486)

Tips for buyers considering a regional move

For Australians thinking about buying or investing in a regional area, preparation and research are key.

• Get pre approval and guidance
  Speaking with a regional home lending specialist can help you understand your borrowing power and act quickly when the right property becomes available.
• Use property research tools
  Comparing suburbs, property values and local market trends can help buyers make informed decisions when exploring unfamiliar areas.
• Understand the tradeoffs
  Regional living can offer affordability and lifestyle benefits, but it’s important to consider access to services, employment and long-term needs.