The shift to affordable lifestyle locations in regional Australia is gaining momentum, with 40% of city residents now considering a move.

This is double the 20% recorded in May 2023, according to new research by the Regional Australia Institute (RAI).

RAI CEO Liz Ritchie says demand for regional living has reached unprecedented levels.

The institute’s latest annual progress report highlights key challenges, including a drop in regional rental vacancy rates from 1.5% in 2023 to 1.3% in 2024, alongside a 9.4% decrease in building approvals.

Ritchie notes that while regional communities are growing rapidly, many are already struggling with housing shortages, particularly in the rental market.

“Many regions are already struggling with housing, particularly rental markets, and until region-specific policy measures are put in place, this will only be further magnified,” she warns.

Despite these difficulties, regional Australia offers significant job opportunities, with nearly 76,000 positions currently available. Ritchie emphasises the need for better services and infrastructure to support the surge in regional migration.