Why are people moving from Sydney? Where Aussies are going instead
Sydney has long been Australia’s most popular city. People from all over Australia and the world move to Sydney for its unique harbour views and career opportunities. But over the past few years, a big trend has emerged: more and more people are leaving. So, why are people moving from Sydney? Well, it’s not just the sky-high housing prices. Let’s break down the main reasons why people are moving from Sydney, and maybe help you decide if you should do the same.
Is Sydney’s population declining?
In FY24, over 104,000 people moved out of Sydney. That’s 2% of the city’s population! Meanwhile only 63,100 have moved into Sydney from other parts of Australia.
Does that mean Sydney is losing people? Well, no. Thanks to overseas migration, the overall population of Sydney is still growing. But Sydney is now the only capital city in Australia that is shrinking without international arrivals.
Who is leaving Sydney?
The main age group moving from Sydney are 30- to 40-year-olds (millennials and young families) looking for more affordable housing and better work-life-balance opportunities. In fact, the millennials are leaving Sydney at twice the rate they’re arriving, according to NSW Planning Minister Paul Scully.
Why are people moving from Sydney?
Reason 1: Housing costs
Sydney’s property market has a reputation for being expensive. Well… it is the second most unaffordable city in the world. Median house prices in inner and northern suburbs have reached record highs, and rental costs are climbing too.
For many families and first-time buyers wanting to get their foot in the door, owning a home in Sydney feels increasingly out of reach. That’s why people are exploring their options elsewhere, in regional NSW, smaller cities, or even interstate, where homes and land are much bigger and more accommodating to growing families.
Reason 2: Cost of living
It’s not just housing that’s a problem. Everyday expenses in Sydney like groceries, utilities, childcare, transport, and dining out cost more than in other parts of Australia. Moving to a regional town or interstate can free up a lot of extra cash. That money can go towards travel, hobbies, savings, investments, or just enjoying a less stressful lifestyle.
Reason 3: Living space
Sydney is getting more crowded by the second and high-density living is another reason people are leaving. Apartments are smaller, yet cost more to buy and rent compared to other cities. New family homes are being built, especially on the outskirts of the CBD, but are increasingly cramped with less outdoor space.
Meanwhile regional towns and interstate cities have larger homes and bigger backyards at more affordable prices. Plus, thanks to remote work, it’s much easier for professionals to relocate away from the city without leaving their careers behind.
Reason 4: Regional and lifestyle attractions
People aren’t just leaving Sydney for cheaper housing. They’re looking for a better quality of life and well-being.
Many older, wealthier Australians are moving to more regional areas to slow things down. New South Wales’ many coastal towns and hinterlands have access to nature, quieter close-knit communities, and a more relaxed lifestyle. Housing prices in these areas are lower than Sydney’s but are steadily increasing because of the demand.
Where are people moving to?
So where is everyone going? Many Sydneysiders are making the move to regional NSW. The top three areas in NSW seeing the highest boom are Central Coast, Lake Macquarie and Maitland. It seems like many are looking for a much more relaxed lifestyle away from the bustling city.
Many others are making bigger decisions to move out of NSW entirely. Queensland is a top choice, with over 30,000 residents moving to Brisbane from Sydney in FY24. Coastal Victoria and smaller interstate cities are also popular. People want affordability and a better lifestyle, sometimes more than they want the city itself.
Thinking about moving away from Sydney?
After reading all this, you might be seriously thinking about your own move away from Sydney. While the decision itself can make a lot of sense, the logistics of relocating (packing, transport, and settling into a new home) can feel overwhelming.
Professional removalists can make the process much easier. Companies like Holloway Removals, who specialise in Sydney interstate removals, can help you move across Sydney, regional NSW, and even interstate. Their experienced team will handle the heavy lifting and organisation, so you don’t have to stress. You can focus on starting your next chapter rather than worrying about the logistics.
The bottom line
So, why are people moving from Sydney? Ultimately, the answer comes down to a few clear trends:
high housing costs
the rising cost of living
the want for more space
the pursuit of a slower lifestyle.
If you’re considering a move yourself, understanding these factors and getting the right support can make the decision much easier and set you up for a fresh start in your new home.