Westpac research shows steady appetite for regional housing alongside rising capital city interest
Australians are continuing to weigh regional moves, with more than one in four indicating plans to buy, invest or rent outside a capital city, according to the latest Westpac Home Ownership Report.
The report found that between January 2024 and October 2025, the proportion of Australians considering a regional relocation remained stable at about three in 10. Over the same period, the share of respondents intending to purchase in a capital city climbed three percentage points to 55%, underscoring the ongoing dominance of metropolitan markets.
| Westpac’s top regional home lending growth areas | |||
|---|---|---|---|
| Rank | State | Region / Locality | Postcode(s) |
| 1 | WA | Geraldton | 6530 |
| 2 | NSW | Lake Macquarie - east | 2280 |
| 3 | QLD | Jimboomba | 4280 |
| 4 | QLD | Bundaberg | 4670 |
| 5 | NSW | Tweed Valley | 2486 |
| 6 | QLD | Townsville | 4814, 4817 |
| 7 | VIC | Wangaratta - Benalla | 3677 |
| 8 | QLD | Burleigh | 4220 |
| 9 | QLD | Caboolture | 4506 |
| 10 | NSW | Port Stephens | 2324 |
| Source: Westpac | |||
“Regional Australia remains a compelling option for buyers seeking value and space,” said James Hutton, managing director of mortgages at Westpac. “What’s notable is the consistent interest in regional moves rather than a surge – Australians are weighing affordability and lifestyle alongside proximity to healthcare, education and job opportunities.”
Cost remains a central driver for those contemplating a move away from the capitals. Among Australians looking to regional locations, 34% cited a lower cost of living and 33% pointed to more affordable property prices as key reasons. The attraction of less crowded communities (28%), along with a desire for more space and access to nature (both 24%), suggests that regional aspirations reflect both budget pressures and lifestyle aims.
However, the online survey of 2,000 adult Australians shows that many prospective movers are alert to the compromises involved. Roughly two-thirds of the respondents planning a regional shift reported at least one concern. The distance to essential services such as hospitals and schools was the most common issue, raised by 32% of respondents. A further 27% were worried about being farther from family and friends.
Employment prospects (23%) and fewer entertainment options (23%) were also identified as barriers. Among Gen Zs, concern about limited leisure and cultural activities was more pronounced, with 39% nominating this as a drawback of regional life.
“Affordability and lifestyle remain central to regional buying intentions,” said Matthew Hassan, senior economist at Westpac. “As infrastructure continues to improve and hybrid work persists, we expect regional interest to remain steady, not spike – consistent with the broader pattern in our data.”
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