The most affordable tree change towns in Australia

The lure of 'sea' and 'tree' changes remains strong, with net migration to regional areas reaching a two-year high as more Australians relocate for more affordable housing, job opportunities and an improved quality of life.

The latest Regional Movers Index (RMI) shows a significant increase in city-to-region migration, with 35.6% more people going from capital cities to regional areas then in the opposite direction.

In the three months to September 2024, city-to-region relocations were 19.8% above the pre-pandemic average and 1.8% above the average recorded during the height of the lockdowns.

Popular coastal centres continue to attract the largest share of movers, with the Sunshine Coast in Queensland, Greater Geelong in Victoria and Lake Macquarie in NSW securing the top three spots by net internal migration inflows, says the RMI, which is generated by the Regional Australia Institute (RAI) and Commonwealth Bank.

But there are also signs that people are moving further afield, with Maitland making its first appearance on this top five list. In fourth place was Moorabool, west of the Melbourne CBD.

There is no doubt that high housing costs, especially in capital cities, have made buying a home unaffordable for an increasing number of people. Over the past 50 years, house prices have surged at rates that far outpace wage increases.

While prices have also risen in the regions, they are still substantially lower. The national median for regional properties was $656,445 at the end of January 2025, according to CoreLogic. The combined capital median was $897,632.

"Regional markets seem to be benefiting from a second wind of internal migration, along with an affordability advantage in some markets, and what looks to be some permanency in hybrid working arrangements across some occupations and industries," says Tim Lawless, CoreLogic's research director.

He points to Australian Bureau of Statistics reporting late last year, which revealed that 36.3% of employed people usually worked from home, which was down from pandemic highs but still above the 32.1% reported in 2019.

And in good news for investors as well as home buyers, regional rents have been stronger relative to the capitals, with the combined regionals rental index up 1.6% over the past three months compared with a 0.3% rise in rents across the combined capitals.

Gross rental yields have held reasonably firm at around 3.5% across the combined capitals and 4.4% across regional Australia, reports CoreLogic.

What to consider before moving

How far away is acceptable? 

More of us can work at least partly from home, but it's important to consider how long a commute you will have when you do have to visit your workplace.

Also think about how far it is from family and friends. This can be particularly important where family provides some unpaid childcare.

Work opportunities 

You may decide that moving house is also a good time to change jobs - or you may want to consider this further down the track.

Look for areas with growing, vibrant and varied economies, with a strong pipeline of infrastructure projects.

Know the local market

Because regional prices are much lower than their capital city equivalents, it's easy to overpay.

Out-of-town buyers are often seen as an easy mark by real estate agents, so get to know the local values.

As in the cities, prices can vary widely and there is always more risk if you buy the most expensive house in an area.

It's important to do your homework so you're happy with the property and its surrounds.

As well as the usual building and pest inspections, spend some time in the locale, so you know if there are noisy roads, neighbours or businesses nearby.

Are there good recreation, cultural and health facilities nearby? What about schools if you have children? Perhaps visit a local cafe for a coffee and chat to locals about what it's like to live in the neighbourhood.

Investment potential

Areas with strong work opportunities and abundant infrastructure are much more likely to attract good tenants.

You should also ensure the area doesn't have too many investors. Search local rent listings to get an idea of the turnaround and speak to local leasing agents to get a handle on the market.

You are likely to be a remote landlord, so finding a good managing agent is a priority. While rental returns are generally better in regional areas than in capital cities, the downside is that capital growth is often weaker.

If affordability rather than location is your key consideration, analysis of PropTrack data reveals 41 regional towns that have a median house price between $450,000 and $500,000.

NSW examples include Aberdeen in the Hunter Valley, about two hours from Newcastle. The median house price is $495,000, up 2.1% in 2024. Seymour, about a 90-minute drive from Melbourne, is a Victorian example.

The median house price is $455,000, down 3.7% in 2024.

Atherton is one of two affordable spots in Queensland's Cairns area. The median house price is $466,000, up 8.4% in 2024.

Top five areas for tree and sea changes

The five regional areas attracting the most movers are:

1. Sunshine Coast, Qld

The combination of natural coastal and bushland beauty, a relaxed lifestyle, job opportunities, quality education and recreational activities makes it a compelling choice for people looking to relocate.

It's less than two hours from Brisbane by car and there is a train line.

Population growth has seen median house prices jump by 70% in five years to $1,055,104, according to CoreLogic's November 2024 Regional Market Update. Median rentals are up 44.4% over the same period to $760 a week.

2. Greater Geelong, Vic

Offering a relaxed lifestyle close to beaches and the countryside, it's the second largest city in Victoria and is only about an hour's commute by car to Melbourne. There is also a train line.

Median house prices have risen 28.1% over the past five years to $710,211 and median rentals rose 28.6% over the same period, according to the CoreLogic report.

3. Lake Macquarie, NSW

The coastal hub adjacent to Newcastle, the second largest city in NSW and also only 90 minutes by car north of Sydney.

It boasts a wealth of natural beauty, with a vibrant community and a thriving economy. It's home to the largest saltwater coastal lagoon in the country, creating a spectacular natural playground.

The median listing price for houses in the area is $899,000 and this has risen 5.08% over two years, according to the property platform Real Estate Investar.

The median rent for houses is $630 a week and the median rental yield is 3.64%.

4. Moorabool, Vic 

The main towns in this semi-rural municipality between Melbourne and Ballarat are Bacchus Marsh, 45km west of the Melbourne CBD, and Ballan, 70km west of the city.

About 40% of residents work in Melbourne while a significant number work in Ballarat. The main industries include agriculture, dairy 
product manufacturing, construction material mining and beverage and malt manufacturing.

The median house price in Bacchus Marsh has increased 22% to $610,000 over the past five years after easing 4.7% in 2024, according 
to realestate.com.au. The median weekly rent is up 25% in five years to $480 a week and the rental yield is 4.2%.

5. Maitland, NSW

A vibrant city conveniently located in the foothills of the Hunter Valley and a short drive from Newcastle. It's a two-hour drive north of Sydney via the Pacific and New England highways.

There is a train service between Newcastle and Maitland and many residents commute to Newcastle and to nearby mining operations in the Hunter Valley.

It offers a variety of housing styles, from historical to modern, and has good recreational, health and education facilities.

Maitland's median house price has risen 12.2% in the past 12 months to $645,000 and it is up 36% over five years, according to realestate.com.au. The median rental rose 6% in 2024 and is up 29% over five years. The rental yield is 4.1%.

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