Australian migration has hit remarkable levels - 43% of residents have moved somewhere new in the last five years. Canberra stands out as the country's fastest-growing territory, with 22,000 more residents than the Australian Bureau of Statistics predicted. Meanwhile, Sydney faces an ongoing exodus. The harbour city made up 30% of all outbound moving requests in September 2023.
People continue to leave Sydney rapidly in 2025. They search for better lifestyles and homes they can afford elsewhere. This reflects a bigger change across the country. More Australians now choose regional areas over capital cities than at any time in the last decade. Melbourne has bounced back as a popular destination. Canberra's steady 2.4% yearly population growth over five years reveals something important about where people move and why. This piece explores what drives these migration patterns, which Australians move between states, and how this population movement reshapes both cities.
Sydney's exodus has grown substantially in 2025. Housing affordability has reached crisis levels, and people are more unhappy with their lifestyle than ever before. Australia faces unprecedented population changes, and Canberra has emerged as an attractive alternative to the harbour city.
Sydney stands as the world's second-least affordable housing market, with a troubling price-to-income ratio of 13.8. Buying a home has become almost impossible. Households need around AUD 280,000 yearly income to afford a median-priced house at AUD 1.4 million. The time needed to save for a home deposit has jumped from six years to over twelve years. This locks younger generations out of the property market completely.
Young adults own fewer homes now. The number of 25-29 year old owner-occupiers has fallen from 43% in 2001 to 36% today. Research shows that each 5% rise in property prices leads to a 1% increase in people moving away. This creates a clear link between housing costs and people leaving Sydney.
Living expenses in Sydney push residents to look for cheaper places to live. Sydney is 25% more expensive than Canberra. Housing runs 30% higher. Eating out costs 17.14% more. Public transport hits the wallet harder too - Sydney residents pay AUD 279.81 monthly while Canberra residents pay just AUD 163.60.
Money worries have left Sydneysiders unhappy. Cost of living bothers 66% of residents the most. On top of that, 85% worry about rising expenses. The numbers make sense for many residents who think about moving states in Australia.
Remote work has changed how Australians move between cities forever. Before COVID-19, only 8% of Australians worked from home regularly. This number shot up to 40% during the pandemic's peak. This changed how people think about where they need to live for work.
Regional areas gained 36,200 people by September 2020, breaking all previous records. The interesting part? Fewer regional residents moved to big cities (193,000 compared to 218,600 the year before).
Three out of four workers believe their employers will keep supporting remote work. People no longer need to live near their workplace. This gives Australians the freedom to choose places that offer a better lifestyle and affordability. This makes Canberra a smart choice for Sydney residents wondering where people are moving to.
People moving from Sydney to Canberra fall into three distinct groups. This migration pattern shapes both cities' populations, and clear trends show who makes this major interstate move.
Young adults make up the largest group of migrants heading to the capital. People aged 20-29 represent 38.6% of all residents moving from coastal areas to Canberra. The capital city's educational and career opportunities draw this youthful influx. Canberra has Australia's highest student population. The story of 29-year-old Ashbin Parajuli shows this trend well: "I changed my mind and moved to Canberra from Sydney, where I studied and had settled initially. It was love at first sight".
Many families now see Canberra as the perfect place to raise children. The capital's lower crime rates compared to other cities make it a safe choice for parents. Housing costs play a vital role, too. Canberra's homes cost about 15% less than Sydney's, which helps families buy suitable homes they couldn't afford in the harbour city.
Canberra's excellent schools appeal to parents with its top universities and quality public and private education. The city's multicultural spirit shines through with over a quarter of its residents born outside Australia. This creates a welcoming environment for families from different backgrounds.
Older Australians represent the third major group moving to Canberra. The city ranks among the world's safest places with very low crime rates, making it "one of the best places to live for single retired females". Canberra's active population and plentiful outdoor spaces draw health-conscious retirees.
The capital offers retirees a balanced lifestyle with cultural events, recreational activities, and great healthcare facilities. North Shore Sydney remains popular with seniors—North Turramurra's population includes over 40% residents aged 65+. Yet Canberra stands out as an appealing choice for those who want a peaceful life with city conveniences.
Canberra keeps getting more popular with people moving from Sydney. Recent data ranks it as the world's second-best city for quality of life. This high ranking shows why the capital attracts so many people looking for a better lifestyle.
People leaving Sydney find Canberra's housing costs very appealing. Rent prices in Canberra are 34.1% lower than in Sydney. A one-bedroom apartment in Canberra's city centre costs AUD 2,445.82, while Sydney charges AUD 3,328.05. The property price to income ratio in Canberra (8.32) looks much better than Sydney's worrying 12.63.
Canberra's rental market stays stable while other capitals struggle. Unit rents went up by just 3.6%, compared to Sydney's jump of 12.9%. The ACT stands alone in Australia by limiting rent increases to 110% of the territory's rental inflation. This helps keep Canberra's vacancy rate at 1.4%, while Sydney sits at a tight 0.3%.
The public sector drives Canberra's economy and offers stable, high-paying government jobs. Workers in Canberra earn some of Australia's highest and most equal wages. This makes the city very attractive for people moving states in Australia.
Canberra is running its biggest infrastructure programme ever right now. The AUD 7.64 billion pipeline creates over 15,300 construction jobs. Money goes into health, education, public transport, public housing, and urban renewal. The city puts AUD 2.14 billion into green transportation improvements.
People asking where people are moving to often discover Canberra's environmental benefits. The city's pollution index sits at just 22.66, while Sydney reaches 28.75. This helps explain Canberra's better quality of life index (200.78 versus Sydney's 191.01). The capital also offers great healthcare and ranks among the world's best for life expectancy. These factors explain why people are moving to Australia's capital territory.
Migration between Sydney and Canberra alters both cities' basic structures and creates ripple effects in housing markets, urban development, and economic influence.
Immigration substantially affects Sydney's housing situation. Studies reveal that a 1% immigrant inflow to a postcode's population raises housing prices by about 0.9% yearly. Migration accounts for one-third of rental price increases in Australia in the last two decades. Sydney faces a severe rental crisis now. Prices have grown by 12.9% while vacancy rates sit at just 0.3%.
Despite that, experts challenge the idea that people leaving Sydney solely causes housing affordability problems. Housing supply grew faster than population (19% versus 16%), yet prices jumped by 70%. Even during the pandemic, with minimal migration, house prices soared by 20% in just 18 months.
The rising number of people moving to Canberra creates major challenges for the territory planners. ACT Treasury expects Canberra's population to reach about 784,000 by 2060. This growth needs roughly 165,000 new homes. Population patterns show clear geographic choices; 65% of Canberrans will live north of Lake Burley Gryphon by 2060.
Urban land use grew faster than population between 1991-2016 (57.3% versus 43.3%). Canberra responded by aiming to build 70% of new housing within existing urban areas. This strategy works well, with 63% of recent housing coming from infill development.
Australia's economic centre moves from Sydney back to Canberra during this migration trend. Sydney's monetary policy dominated for decades. Now, Canberra's fiscal policy takes centre stage. The yearly budget showcase might give way to frequent mini-budgets and fiscal statements.
The migration debate turns political as opposition figures connect migration directly to housing affordability challenges. But experts point out that "migration is not the best policy solution if you want to tackle housing costs. The best way to tackle housing costs is to build more homes"
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People moving from Sydney to Canberra mark one of Australia's biggest population changes in recent years. Housing costs, lifestyle issues and flexible work options have created perfect conditions that push Sydneysiders toward the nation's capital. This trend looks set to continue well into 2025.
Canberra's unique mix of benefits attracts young professionals, families and retirees. The city's housing costs play a vital role, with rents 34.1% lower than Sydney's. The stable job market, better infrastructure and cleaner environment make compelling reasons to relocate.
This population shift has altered the map of both cities. Sydney still struggles with its rental crisis even as people leave, while Canberra faces major planning challenges to house nearly 800,000 residents by 2060. The balance of political and economic power has changed, too, and Canberra is becoming Australia's economic hub once again.
The bigger picture shows how Australian priorities have evolved. People value affordable living, work-life balance and environmental quality more than big-city attractions these days. Small cities and regional areas like Canberra will benefit substantially from this population spread.
The flow of people from Sydney to Canberra shows how Australians' relationship with cities is changing. The trend's future pace depends on housing policies, economic conditions and workplace flexibility. Despite that, the core factors - affordable living, lifestyle quality and job prospects - will stay relevant for years.
