Cost of living pressures and not the pandemic is driving the shift from city to country

Homes are not only cheaper in the country but day-to-day living expenses are also seen as more affordable than the city.

City residents are still taking the plunge on the shift to regional Australia.

Population flows from city to country are up by 16.3 per cent compared with 2018 and 2019 and are still slightly above the levels reported during the height of the pandemic.

More people are continuing to move from the city to the regions than the opposite direction.

"It clearly shows that the love affair with regional living is far from over and highlights the importance of resourcing the social and physical infrastructure that these growing places urgently need," Regional Australia Institute chief executive Liz Ritchie said.

Continuing strong growth in regional jobs market and the cheaper cost of housing in more remote parts of the country is helping fuel the interest in growth hotspots, another update from RAI and Commonwealth Bank noted.

Cost of living pressures are helping fuel the exodus.

Ms Ritchie said city people are seeing country communities as offering a happier, cheaper and better quality of life.

"In 2020, 67 per cent of people thought regional living would give them more time for themselves. In 2023, this jumped to 74 per cent," Ms Ritchie said.

"At the same time, net dissatisfaction with city life is up, and more people are now worried about cost-of-living pressures in the city.".

Commonwealth Bank executive general manager (regional and agribusiness banking) Paul Fowler said growth in regional Victoria and Queensland remained strong, with jobs, lifestyle and housing attracting more people.

Queensland continued to prove most attractive for city dwellers moving to the regions, accounting for 41pc of net capital outflows in the year to June 2023 - up from 33pc the previous year.

Regional New South Wales and Victoria retained their share of net capital outflows at 33pc and 20pc respectively.

"Mobility around the country continues to be supported by employment opportunities in the regions," Mr Fowler said.

"Growth in local economies and opportunities in sectors such as wholesale trade, manufacturing, health and education will continue to entice people to regional areas."

The top five areas by share of net capital to regional migration are - Queensland's Sunshine Coast and Gold Coast, Geelong in Victoria and Lake Macquarie in NSW, which still experienced a fall in quarterly and annual growth.

Moorabool in Victoria bucked the trend with 88pc growth in the past year, mostly attracted to Melton.

Regional Western Australia was the standout in June quarter's numbers, taking out three of the top five local government areas for annual growth in total net internal migration inflows.

Geraldton, Waroona and York regions experienced some big increases in inflows.

The regions experiencing the greatest growth in net migration from other regions saw Wodonga in Victoria topping the list again followed by the Sunshine Coast, Mackay, Bendigo and Geraldton.

Other notable growth hotspots were observed in South Australia and NSW, such as Murray Bridge, Clarence Valley and Maitland.

"In June, there were more than 87,000 jobs advertised online in regional Australia," Ms Ritchie said.

"The old myth that there aren't any jobs in the regions just isn't true.

"The inflows we're seeing into regional areas, particularly in those WA hotspots, shows people know they won't compromise, and can often advance their careers in a regional context."