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Urbanisation is a global phenomenon, with more than half of the world's population now living in urban areas. In Australia, 90% of the population lives on just 0.22% of the country's land, with 87% living within 50km of the coast. As of the 2016 census, 40% of Australians lived in the two largest cities, Sydney and Melbourne, and more than two-thirds lived in a capital city. Over the last 30 years, Australian cities have seen substantial suburbanisation and re-urbanisation, with a repopulation of inner cities. This turnaround from inner-city decline to densification has been most pronounced in Melbourne, which has seen its population jump from 3,000 to 4,000 people per square kilometre in the last decade. This shift towards urbanisation in Australia raises questions about the future of population growth and the need for new urban areas.
| Characteristics | Values |
|---|---|
| Urbanization rate in 2023 | 86.62% |
| Population living in urban areas | 90% |
| Population living within 50km of the coast | 87% |
| Population living in capital cities | 66%+ |
| Population living in Sydney and Melbourne | 40% |
| Population growth impact on housing costs | Positive correlation |
| Population growth impact on rental prices | Positive correlation |
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What You'll Learn
Population density
Australia is one of the most urbanised nations in the world, with 90% of its population living in just 0.22% of the country's land area. More than two-thirds of Australians live in capital cities, with 40% of the population residing in the two largest cities, Sydney and Melbourne. Sydney is Australia's largest city, with around 4.5 million inhabitants.
While Australia is highly urbanised, it does not have any "megacities" (cities with more than 10 million inhabitants). However, the number of megacities worldwide has been increasing, and by 2030, it is predicted that there will be over 41 megacities globally.
Over the past 30 years, Australian cities have experienced significant changes in population density. Melbourne has led the way in inner-city rebirth, with a jump from around 3,000 to 4,000 people per square kilometre. This trend is attributed to government consolidation policies aimed at increasing population density across metropolitan areas and promoting urban consolidation, especially in inner cities. Sydney, Brisbane, Adelaide, and Perth have also witnessed similar, though less pronounced, shifts in population distribution.
The Regional Sponsored Migration Scheme (RSMS) in Australia has played a role in managing population density. The scheme allows employers in regional, remote, or low-population-growth areas to sponsor skilled employees, relieving pressure on major cities. As a result, around one in six new permanent arrivals are now settling in regional Australia, contributing to a more balanced population distribution across the country.
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Suburbanisation and re-urbanisation
Suburbanisation in Australia has been a response to the desire for the "Great Australian Dream" of the traditional quarter-acre block, and is associated with low-density housing. Young couples and families looking for affordable housing have contributed to this trend. The development of large regional shopping centres, changes in employment (such as working from home and businesses set up in suburbs), and the construction of expressways and public transport have facilitated the movement of people to areas immediately next to large cities. Sydney's suburbs originally developed along railway lines, but the advent of the motor car and the expansion of major road networks further fuelled suburbanisation.
The suburbs of Sydney, such as Kellyville and Glenmore Park, have witnessed significant growth, along with the emergence of major suburban centres like Parramatta, Penrith, Liverpool, and Campbelltown. Suburbanisation has also led to the decentralisation of offices and businesses from the CBD to suburban areas. This shift has been influenced by factors such as cheaper rents, proximity to customers, easier access, and the availability of parking.
Re-urbanisation, or inner-city rebirth, has been observed in Melbourne, which has led the way in reversing inner-city decline and increasing densification. Between 1981 and 1991, Melbourne experienced a decrease in population in inner areas, with density increasing in middle-ring suburbs. However, from 1991 to 2011, the inner areas began to repopulate, resulting in approximately 1,500 more people per square kilometre in the inner 5km ring. This turnaround has been attributed to greenfield development, infill, and urban regeneration projects.
While suburbanisation and re-urbanisation have been prominent trends, counter-urbanisation, or migration from major cities to regional spaces, has also gained attention in Australia. The COVID-19 pandemic and advances in telecommuting capabilities have influenced this movement. Additionally, the Australian government has been encouraging new migrants to settle in regional and rural areas through initiatives like the Regional Sponsored Migration Scheme (RSMS).
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Migration and settlement patterns
Australia is one of the most urbanised nations, with 90% of its population living in just 0.22% of the country's land area. As of the 2016 census, more than two-thirds of Australians lived in a capital city, with 40% of the population in the two largest cities, Sydney and Melbourne. Sydney is Australia's largest city, with around 4.5 million people.
While urban settings are a relatively new phenomenon in human history, they have transformed the way we live, work, travel, and build networks. Over the past few centuries, and particularly in recent decades, the world population has moved to cities. This transition has been observed in most high-income countries across Western Europe, the Americas, Australia, Japan, and the Middle East, where more than 80% of the population lives in urban areas.
In Australia, there has been a substantial suburbanisation and re-urbanisation across its major cities, leading to a repopulation of inner cities. This phenomenon has been particularly pronounced in Melbourne over the last decade, with the population jumping from around 3,000 to 4,000 people per km². Between 1981 and 1991, Melbourne was a classic "doughnut city", with a population declining in inner areas, density increasing in the middle-ring suburbs, and steady growth in the outer suburbs. However, from 1991 to 2001, growth shifted towards the inner city. This can be attributed to government consolidation policies that aimed to promote urban consolidation and increase population density across whole metropolitan areas.
While Australia's cities continue to grow, the Regional Sponsored Migration Scheme (RSMS) has helped alleviate the pressure on large cities by allowing employers in regional, remote, or low-population growth areas to sponsor employees to work in those regions. As a result, around one in six new permanent arrivals are now settling in regional Australia. FIFO (fly-in, fly-out) workers are also contributing to this trend, choosing not to live where they work and instead commuting from other cities or even countries.
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Inner-city rebirth
Australia is one of the most urbanised nations in the world, with 90% of its population living in just 0.22% of the country's land area. As of the 2016 census, over two-thirds of Australians lived in a capital city, with 40% of the population residing in the two largest cities, Sydney and Melbourne. Sydney is Australia's largest city, with around 4.5 million inhabitants, while Melbourne has witnessed a significant increase in population density over the last decade.
Melbourne is a prime example of inner-city rebirth, showcasing a remarkable 30-year transformation from inner-city decline to densification. Between 1981 and 1991, Melbourne experienced a decrease in population in its inner areas, with a loss of almost 200 people per square kilometre in the inner 5km ring. However, from 1991 to 2001, the focus shifted towards repopulating the inner and middle areas. Government policies and strategic plans aimed to promote urban consolidation, particularly targeting the inner city.
This trend is not unique to Melbourne, as other major Australian cities like Sydney, Brisbane, Adelaide, and Perth have also witnessed similar, albeit less pronounced, shifts. These cities have moved away from the ""doughnut city" model, where population density was higher in the middle-ring suburbs. Now, Australia's cities are more densely populated, with a greater number of people choosing to live in inner-city areas compared to 30 years ago.
The inner-city rebirth in Melbourne and other Australian cities can be attributed to various factors, including government consolidation policies and incentives. Additionally, the concentration of economic opportunities and amenities in urban centres attracts people to inner-city living. This phenomenon is part of a broader global trend of urbanisation, with more than half of the world's population now residing in urban areas.
To accommodate future population growth and manage urban sprawl, Australian cities may need to focus on new urban areas or implement strategies to contain and control sprawl in existing cities. The Regional Sponsored Migration Scheme (RSMS) is one such initiative, aiming to attract migrants to regional areas and relieve pressure on large cities. By encouraging skilled workers to settle in regional Australia, the scheme addresses the challenges of urban consolidation and provides a more balanced distribution of population growth across the country.
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Urban-consolidation policies
Australia is one of the most urbanised nations in the world, with 90% of its population living in just 0.22% of the country's land area. As of the 2016 census, more than two-thirds of Australians lived in a capital city, with 40% of the population residing in the two largest cities, Sydney and Melbourne. Sydney is Australia's largest city, with around 4.5 million inhabitants, while Australia's total population is around 23 million.
The focus of urban-consolidation policies has been on increasing population density in inner-city areas. This is a shift from the trend in the 1980s and 1990s, where population density was highest in middle-ring suburbs, with a decline in inner-city areas. This phenomenon, known as "doughnut cities", has been reversed in the last 20 years, with a repopulation of inner cities. Melbourne is a prime example of this turnaround, with its inner-city population jumping from 3,000 to 4,000 people per square kilometre in the last decade.
State and territory strategic plans have promoted urban consolidation, focusing on the inner city. These policies have aimed to incentivise people to live in inner and middle areas, increasing the overall population density of metropolitan areas. This shift has transformed the way Australians live, work, travel, and build networks, with more people choosing to live in or near high-density cities.
The Regional Sponsored Migration Scheme (RSMS) is another policy initiative that takes the pressure off large cities. It allows employers in regional, remote, or low-population-growth areas to sponsor skilled employees to work in those regions. This has encouraged around one in six new permanent arrivals to settle in regional Australia, helping to distribute population growth more evenly across the country.
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Frequently asked questions
Urbanisation in Australia is changing in several ways. Firstly, the country's cities are becoming more densely populated, with a greater number of people living in inner areas compared to 30 years ago. This is particularly notable in cities like Melbourne, Brisbane, Perth and Sydney, where urban sprawl has been significant. Secondly, there is a trend of migrants settling in regional areas outside of major cities, with around one in six new permanent arrivals choosing these locations. Finally, Australia's two largest cities, Sydney and Melbourne, are home to 40% of the country's population, contributing to its high level of urbanisation.
A key factor is the Australian government's consolidation policies implemented in the late 1980s and early 1990s, which incentivised people to move back to inner and middle areas of cities. From 2000 onwards, policies shifted to focus on increasing population density across entire metropolitan areas.
One implication is the need to manage future population growth and contain urban sprawl. The concentration of people in certain areas can also impact the environment and natural resources, as well as influence the way people live, work, travel and interact with each other.
