Money crisis sparks major Aussie exodus: 'Hundreds of dollars better off'

Yahoo

18-05-2025

Thousands of Australians are leaving the bright lights of the big city behind as they try to cut down costs. New research from Finder has revealed that one in eight people surveyed had relocated away from a capital city in the last three years to get on top of their savings.
The study found this exodus is far from over, with a further 1.5 million people tipped to move somewhere cheaper by 2028. Finder's money expert, Rebecca Pike, told Yahoo Finance the savings from ditching a city like Sydney can be huge.
'If you can continue earning what you were in a capital city, you will be hundreds of dollars better off every month," she said.
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'Banking that difference instead of just breaking even can lead to much greater wealth long-term.'
Pike said Aussies are "sick of scraping by" after years of interest rate hikes, soaring rent prices, and increasingly expensive supermarket trips.
Finder discovered that saving on living costs was the most popular reason for the city move, followed by people wanting to be able to save for a house (25 per cent), to save on mortgage or rent costs (14 per cent), and to be closer to family (14 per cent).The most popular relocation was to a regional city or town, while others opted for another cheaper capital city.
'There are plenty of budget suburbs delivering better value – households might just have to expand their search further out," Pike told Yahoo Finance.
But she warned that moving somewhere cheaper might not necessarily equate to a better life.
"It might not be worth [it]... if your quality of life diminishes or if you're then going to spend more on car costs driving to see friends or family that still live in the city," she said.
Zoe Carney relocated from Melbourne to a small town on the way to Mildura to work as a rural teacher.
She told Yahoo Finance the high cost of living was a major factor spurring her move and she's now saving an extra $150 per week.
The biggest saving was in her rent.
'In Melbourne, I was spending about $400 a week... but I was also living in my own one-bedroom,' she said.
'Now, I have a two-bedroom unit with a courtyard so I have way more space now and this is only $320 a week."
Fellow teacher Courtney McCrone moved back to her hometown of Temora in the Riverina region of New South Wales after living in Canberra and Wollongong.
'It's definitely a lot cheaper to live here compared to other places, with rent and general living expenses,' she told Yahoo Finance.
'When we were in Wollongong, I probably paid over double what we pay [for rent] here. So that's a huge difference.
'There's no way we could afford to build the house we are building, with the space we are going to have in any capital city. Small rural towns are a lot more affordable and you get more for your money as well."
Finance influencer Tash Estchmann shared recently that a 28-year-old who moved from Sydney to Newcastle saw "massive savings" and they've been able to get on top of their financial goals much faster.
Even though it's only two hours away from one of the most expensive capital cities, you can shave a lot off your expenses.
They now spend around $400 per month on groceries, which is a third of what Finder said is the average for a single person at $616.
Their rent is less than $500 per week, with the average Sydney unit rental price being a little over $700 per week, according to SQM Research.
They're also forking out just $220 per month on fuel and tolls, when those same costs in Sydney are around $254 per week.
Taking public transport only costs them $80 per month, which would be around $200 if they lived in Sydney.
Commonwealth Bank recently revealed where people are deciding to settle after leaving the big smoke.
Queensland's Sunshine Coast has been the most popular regional destination for nine consecutive quarters.
Other Queensland communities like Gladstone, Fraser Coast, Mackay and Gympie and Toowoomba are also very popular, as are the Northern Rivers and the Southern Highlands regions in NSW, East Gippsland in Victoria, and Albany, Bunbury, Harvey, Capel and York in Western Australia.
Regional Australia Institute (RAI) CEO Liz Ritchie said the regions are "the new frontier" for many chasing cheaper housing and quieter living.
"People are enthusiastic about the career opportunities and lifestyle benefits it offers," she said.
"It's happening all over the country. It's why we must ensure communities have the infrastructure, funding and support they need to ensure they can continue to welcome new residents.'
Sydneysiders were the most likely to move to the regions, accounting for 59 per cent of net city outflows, however that is down from 65 per cent in the 2023 December quarter.
Melburnians are increasingly on the move, with their migration up 5 per cent to 40 per cent compared to the year prior.