Lexi Webster
Australia has a highly mobile population, with around 40% of people changing their address every five years—more than twice the global average. In 2021, 14.3% of Australians changed their address within the country in the previous year, a slight increase compared to the years before the 2011 and 2016 Censuses. This figure is even higher when looking at a five-year period, with 43% of people aged 15 and over having moved in the last five years. This makes the moving industry a significant part of the Australian economy, worth $2 billion AUD annually.
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What You'll Learn
Australia's internal migration patterns
Australia has a very mobile population, with nearly 40% of people changing their address every five years, which is more than twice the worldwide average. This makes the Australian population one of the most mobile in the world. The median age of people who moved within Australia between 2016 and 2021 was 33 years, while the median age of people who did not move was 49 years.
Internal migration in Australia is the movement of people from one defined area to another within the country. It may be across the country (interstate), within a state or territory (intrastate), or even within the same suburb. Australia's internal migration follows a well-established pattern that coincides with significant life events. For example, young adults may move to commence higher education, enter the workforce, or start a family. Higher rates of migration of young children are tied to that of their parents. Later in life, migration can be related to older children leaving home (downsizing), retirement, and relocation for health and caring purposes.
In 2021, 14.3% of the population changed their address within Australia in the year prior, a slight increase compared to movement one year prior to the 2011 and 2016 Censuses. In the September quarter of 2020, 76,200 people moved interstate, with capital cities experiencing a net loss of 11,200 people due to internal migration. Queensland is the most popular interstate moving destination, with almost 100,000 arrivals from 2015 to 2016. In 2015-16, the Australian state with the most outbound movers was NSW, with over 100,000 departures. The most common internal migrations in Australia involve moving away from Sydney.
The population of Australia's capital cities tends to be younger and age more slowly than regional areas. This is because capital cities have historically attracted a larger share of overseas migrants, who tend to be younger than the overall population. In addition, younger people tend to move into capital cities from regional areas to pursue educational and job opportunities. While older people are less likely to relocate, when they do, they often move out of capital cities to regional areas.
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Migration to capital cities
Australia has a highly mobile population, with around 43% of people aged 15 and over having moved in the last five years. This is more than twice the worldwide average. The country also experiences high rates of interstate migration, with Queensland being the most popular moving destination between 2015 and 2016.
Capital cities in Australia have historically attracted a larger share of overseas migrants, who tend to be younger than the general population. In 2017-18, 79% of Australia's population growth was in the capital cities, with a population increase of 307,800 people, or 1.9%. This was nearly twice the growth rate of non-capital cities, which only gained 83,200 people.
The capital cities' popularity is driven by the demand for skilled migrants, who make up a large proportion of international migrants. Between 2011 and 2016, Australia received 1,379,055 international migrants, of whom nearly 50% were high-skilled or semi-skilled. Of these, 85.52% settled in the greater capital cities, with Greater Sydney and Greater Melbourne receiving over 50% of migrants. Skilled migrants are attracted by the demand for their skills and the economic opportunities that cities offer.
In addition to international migration, internal migration also contributes to the population growth of capital cities. Young people from regional areas move to capital cities to pursue educational and job opportunities. However, there are variations in the popularity of different cities over time. For example, in August 2020, Melbourne and Brisbane were tied for the top spot as the most popular cities for inbound moves, with 24% each. But in September, Melbourne pulled ahead with 28% of metro inbound moving enquiries, reclaiming its standalone position as the number one place to move in Australia.
Despite the overall trend of population growth in capital cities, there have been quarterly net losses. For example, in the September quarter of 2020, capital cities had a net loss of 11,200 people due to internal migration. Similarly, in March 2021, capital cities had a net loss of 11,800 people from internal migration, the largest quarterly net loss on record.
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Migration reasons
Australia has a very mobile population, with nearly 40% of people changing their address every five years, which is more than twice the worldwide average. This makes the moving industry a large part of the Australian economy. Australians move for various reasons, including work, education, relationships, illness, disability, and the desire to downsize. Typically, two-thirds of all moves take place between October and March.
- Work and Economic Opportunities: Historically, Australia has attracted migrants seeking economic opportunities and a better life. In recent years, work has been the most common reason for moving between states. In 2023-24, every state and territory recorded a net gain in population due to overseas migration, contributing to Australia's population growth.
- Education: Many international students migrate to Australia for higher education, particularly from countries like India and China. This trend has increased in recent years, contributing to the net gain in population through overseas migration.
- Family and Relationships: While it is no longer the primary reason, many people still migrate to Australia to reunite with family members or partners already living in the country.
- Personal and Lifestyle Choices: Some people move to Australia for a change of scenery or to pursue a different lifestyle. Others may move within Australia for similar reasons, relocating from capital cities to regional areas or vice versa.
- Escape Conflict or Involuntary Migration: Historically, some migrants have come to Australia involuntarily, such as convicts or labourers. Today, some people may still seek refuge in Australia to escape conflict or involuntary labour in their homelands.
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Migration and the economy
Australia has one of the most mobile populations in the world, with 43% of people over 15 having moved in the last five years, and 40% moving every five years. This is more than twice the worldwide average. Interstate migration is also common in Australia, with Queensland being the most popular moving destination between 2015 and 2016, and New South Wales being the state with the most outbound movers during the same period.
Australia has historically had a net gain from overseas migration, with more people migrating to the country than leaving each year. In 2019, Australia had the highest share of migrants in the OECD after Luxembourg, at 30% of the population. This has had a positive impact on the economy, boosting productivity, employment, and patenting. Migration has helped to offset population ageing, contributed to higher levels of GDP growth per capita, and improved labour productivity. It is also a vital source of revenue for growth sectors such as education.
During the COVID-19 pandemic, Australia's border restrictions caused a decrease in net overseas migration, as fewer people were able to enter the country. This trend reversed in 2022 when the borders reopened, leading to a period of record net overseas migration. However, in 2023-24, there was a decrease in net overseas migration, driven by a decrease in migrant arrivals and an increase in departures.
Looking forward, Australia's population growth is expected to gradually decline from 1.6% in 2024-25 to 1.2% by 2034-35. Despite this, net overseas migration is forecast to remain the strongest contributor to population growth over this period. To sustain this growth, the country will need to address challenges such as the mistreatment and underpayment of temporary migrant workers, weak regulation of employers who hire migrants, and ensuring that visa allocations reflect genuine skills shortages.
In summary, migration has had a significant impact on Australia's economy, contributing to population growth, boosting productivity and employment, and supporting key industries. With Australia's ageing population and projected decline in population growth, migration will continue to play an important role in sustaining the country's economic prosperity.
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Migration and housing market
Australia has one of the most mobile populations in the world, with 43% of people aged 15 and over having moved in the last five years. This equates to more than twice the worldwide average. In the September quarter of 2020, 76,200 people moved interstate, with capital cities losing 11,200 people due to internal migration. Queensland is the most popular interstate moving destination, with almost 100,000 arrivals between 2015 and 2016.
Overseas migration has been a significant source of population gain for Australia, with a net gain of 445,640 people in 2023-24. The population growth rate is projected to be 1.6% in 2024-25, gradually declining to 1.2% by 2034-35. Net overseas migration is expected to remain the strongest contributor to population growth throughout this period.
Migration has been frequently cited as one of the primary factors influencing the housing market. High levels of migration can increase housing prices and rents, particularly in areas with high concentrations of migrants and international students. For instance, an immigrant inflow of 1% of a postcode's population raises housing prices by around 0.9% per year. However, the impact of migration on the housing market is complex and influenced by various factors, including the construction of new dwellings, economic conditions, and government policies.
The rental market is particularly affected by fluctuations in migration. ABS data revealed that 60.8% of migrant arrivals between 2016 and 2021 were renters, with a higher incidence of homeownership among permanent migrants who had been in the country longer. Temporary migrants, particularly those on skilled or student visas, were more likely to rent.
While migration can contribute to increased housing demand, capping migration may not be a sustainable solution as it could reduce incentives for investment in the housing market and create demand shocks. Instead, addressing the housing crisis may require increasing the supply of purpose-built student accommodation and carefully managing migration policies to avoid short-term volatility.
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Frequently asked questions
In 2021, 14.3% of the population changed their address within Australia, which is a slight increase from the years before the 2011 and 2016 Censuses. This equates to around 3.5 million people.
Australia has a very mobile population, with nearly 40% of people changing their address every five years, which is more than twice the worldwide average.
Internal migration in Australia is often related to significant life events, such as starting higher education, entering the workforce, or starting a family. Other reasons include housing affordability and suitability, with people moving to accommodate their household as their family grows.
