More than a quarter of Australians want to go bush for their next property move

Australians continue to show strong interest in regional areas, with more than a quarter planning to buy, invest or rent outside a capital city, according to a new report.

Between January 2024 and January 2025, the number of people looking at making a regional property move was steady at around three in 10, according to the latest Westpac Home Ownership Report.

"Regional Australia remains a compelling option for buyers seeking value and space," said James Hutton, Westpac managing director of mortgages.

"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."

Australians considering a move to regional areas are primarily motivated by a lower cost of living (34 per cent) and more affordable house prices (33 per cent).

The appeal of less populated environments (28 per cent), along with the desire for more space and proximity to nature (both 24 per cent), highlights a pragmatic blend of budget and lifestyle considerations driving regional intentions.

"Affordability and lifestyle remain central to regional buying intentions. 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," said Westpac senior economist Matthew Hassan.

The rush to the regions which had created a spike in interest and moves, was now tempered by prices also being on the rise in regional Australia.

Price problems

"Regional areas have also seen significant price appreciation as well so they may not be as appealing as three or four years ago," Mr Hassan said.

He said that along with home buyers now also accepting greater density in cities, fewer people were looking for a house outside of the capitals

According to the report there were also concerns for those considering making the move to regional Australia.

The most common concern was the distance from key facilities such as healthcare and schools, followed by the distance from family and friends.

During this period Westpac saw its strongest growth in home loans across NSW, Western Australia, Queensland and Victoria.

Lifestyle and connection

In NSW the fastest growing area was Lake Macquarie - east, near Newcastle, the Tweed Valley and Port Stephens.

"Lake Macquarie East sits right on the edge of the growth corridor between Belmont and Morisset, and we're seeing key growth areas emerge in little pockets all along the coast," aid Westpac lending area aanager Sonia Gageler.

"With the coast on one side and the lake on the other, it's a lifestyle destination that's also incredibly well connected, with easy access to Newcastle, the Central Coast, and Sydney via the freeway."

She said that investors are increasingly looking ahead to retirement, while new estates with more affordable options are attracting first home buyers who are being priced out of Newcastle.

"As price growth continues, people are pushing further out, and Lake Macquarie East is perfectly positioned to benefit from that trend," Ms Gageler said.

Westpac Mobile Senior Lending Manager Tamara Ng said Port Stephens the area offers real choice, with a strong pipeline of new house and land developments, meaning buyers can still get a backyard or live close to the water for a fraction of the cost of the capital cities.

In Victoria the Wangaratta-Benalla regions saw the greatest increase in home loans.