- A shift from metropolitan areas to the regions may be an opportunity to rebalance Australia’s population growth, but researchers warn plans are needed
- In the March 2021 quarter, there was a net loss of 11,800 people from Australia’s main capital cities through internal migration, according to ABS
- According to CoreLogic, house prices in the regions have climbed 21.6 per cent over the past 12 months, with the median home value rising to $493,925
- The AHURI study emphasised the role of infrastructure, transportation and telecommunications in attracting jobs and population in regional areas.
COVID-19 has boosted interest in Australia’s regions to spur new economic activity while potentially alleviating congestion and housing affordability pressures in capital cities.
This shift from metropolitan areas to the regions may be an opportunity to rebalance Australia’s population growth, but researchers warn plans are needed to accommodate the trend.
A study by the Australian Housing and Urban Research Institute (AHURI) examined international strategies as well as Australian case studies to see what might best support future development.
The researchers from the University of Sydney and Harvard University concluded there was no one ‘optimal’ model for regional planning, development or government.
“The shift to the regions could be the precursor to a rebalancing of Australia’s settlement and population growth; but it needs to be planned for; with the current housing crises in the regions something that needs to be worked through to ensure that the long-term benefits of a more balanced urban and regional settlement pattern can be sustained,” lead author Nicole Gurran from the University of Sydney said.
In the March 2021 quarter, there was a net loss of 11,800 people from Australia’s larger capital cities (Sydney, Melbourne, Brisbane and Perth) through internal migration, according to the Australian Bureau of Statistics.
This was the largest net loss on record since the series started in 2001 and trumped the previous record set in the September 2020 quarter.
The loss was due to 66,300 departures (up slightly from 66,000) to non-capital city areas.
According to CoreLogic, house prices in the regions have climbed 21.6 per cent over the past 12 months, with the median home value rising to $493,925. Meanwhile there are reports from towns across the country of acute supply challenges as those from the big smoke price out locals.
The report said there was no ‘best’ model for regional planning, but noted a broad tendency has emerged towards place-based regional interventions that focused on particular area characteristics and advantages.
“They all benefited from being close to a larger state capital city or, in the case of Albury-Wodonga, from being an important transport and logistics interchange on the NSW and Victoria border,” Professor Gurran said.
“In addition, they all have important regional service roles such as administrative headquarters for local and sometimes state services, and health, education, commercial and retail services.”
Health care and social assistance were the main industry sectors in terms of employment in almost all the Australian rural cities studied, followed by either retail or education.
The study emphasises the role of infrastructure, transportation, and telecommunications in attracting and retaining jobs and population in regional areas.