Community & Business
18 February, 2026
Gen Z leads Great Urban Exodus
Generation Z are now the most likely cohort considering a move out of metro areas, according to a new report
Generation Z may be on the march to the regions – now the most likely cohort considering a move out of metro areas, according to new survey results released today by the Regional Australia Institute (the RAI).
Generation Z (18 to 29 years) has overtaken its older counterpart, Millennials (30 to 45 years), in having the greatest desire to leave the city behind, with almost half (49 per cent) contemplating relocating.
Overall, the annual snapshot shows more than 5.3 million or one-in-three (37 per cent) metropolitan Australians have set their sights on regional Australia saying they would consider a future move, with cheaper cost of living, more affordable housing, and getting back to nature the top drivers for the change.
While the younger cohorts are open to a life beyond the city limits, 64 per cent of Baby Boomers surveyed said they are staying put.
RAI CEO Liz Ritchie said the regional dream is the new Australian dream and there is a demographic shift on the horizon.
“The cliche is that older metro-dwellers look to the regions when they retire, but in fact the desire for the younger cohort to make the shift from our cities is increasing. The secret is out that regional Australia has a lot to offer younger people - this is why we say the future of Australia is regional.
“This is a wake-up call for employers and policy makers. Young people are not just chasing a tree change, they’re looking for career opportunities, lifestyle benefits, and communities where they can thrive. Regional Australia is increasingly seen as a place where you can get ahead and enjoy a balanced life,” Ms Ritchie said.
The market research commissioned by the RAI, and undertaken by YouGov, showed 61 per cent of Gen Z city workers said a salary increase was the number one factor that would persuade them to take a job outside metropolitan Australia. A financial incentive, for example, a relocation payment (49 per cent), and faster career progression (45 per cent) rounded out the top three factors this cohort were chasing when considering a regional career.
“Interestingly, Generation Z are also seeking flexible working arrangements, along with help gaining skills and training, suggesting these movers are keen to learn and get ahead, but also achieve a positive work/life balance.
RAI first commissioned this market research in December 2020, and it found concern about limited job opportunities (55 per cent) for self or partner was identified by respondents as the biggest barrier to moving to Regional Australia. However, in 2025 only 27 per cent listed it as a barrier, with more than 64,000 roles available in December 2025.
Founder of ViewJobs, Lewis Romano, said regional Australia now represents one of the most significant workforce and economic opportunities in the country.
“Regional markets are actively seeking skilled and motivated workers, and the breadth of roles available today means people can build meaningful careers without compromising on ambition or earning potential.”
Regional employers are competing hard for talent, particularly across healthcare, education, trades and community services. We’re seeing strong salary growth and faster career progression in many regional markets compared to metropolitan equivalents, which is a powerful drawcard for younger workers considering the move,” Mr Romano concluded.
The main barrier to moving for younger people was fear of isolation from family and friends (Gen Z: 44 per cent), while unsurprisingly older generations were concerned about access to health care (Baby Boomers: 71 per cent).
Millennials (born 1981 to 1996) buck the trend here. Their concerns reflect their time of life – their biggest worry about leaving the city is limiting their career (40 per cent) and taking a pay cut (equal to concerns about isolation 39 per cent each). Access to healthcare comes in at fourth spot (37 per cent).
And where will these Australians move from? Sydneysiders are among the most likely metro-dweller to make the change, with 41 per cent saying they would consider a life in the regions - Melbournians took second place at 38 per cent.
Additional highlights from the data from all respondents:
Over 1-in-3 metro-dwellers (37 per cent) surveyed are weighing up a move to regional Australia. This is equivalent to 5.3 million people.
The timeframes for moving have eased slightly over the last 12 months with just six per cent of all potential movers saying they would be likely to head to the country in the next six months. In 2024, 10 per cent were ready to go.
More than one third (34 per cent) of potential movers said they would be likely to make the change in the next three to five years. This is up from 25 per cent just 12 months earlier.
Gender also plays a part. Of respondents, 41 per cent of men were likely to move, while only 33 per cent of women indicated the same.
Access to healthcare is a significant concern for potential metro- dwellers with 53 per cent citing it as their greatest barrier.
Almost one third (29 per cent) of Generation Z see the ability to work remotely as a pull factor to regional Australia, compared to just 16 per cent of Generation X (45-61 years).
A salary increase is the number one factor (53 per cent) that would persuade metro-dweller to take a job in regional Australia.
“This is also important information for policy makers planning for growth in regional Australia. It supports our 40 for the Regions campaign – and in particular our call for 40 per cent of homes built under the National Housing Accord to be built in the regions,” Liz Ritchie said.
“The momentum to move to the regions continues, so we need to plan for it. We need a National Population plan, investment in regional infrastructure and a commitment to ensure that regional life is not ‘second tier’ in health care, childcare and education,” Liz Ritchie concluded.
RAI commissioned this research as an integral component of its Move to More campaign, which aims to highlight and promote the diverse opportunities available for living, working, and investing in regional areas.
