Why we’re fleeing Sydney: suburbs losing the most people revealed

The suburbs losing the most people amid changing lifestyle preferences have been revealed, with the exodus expected to have a lasting impact on home prices, schooling and costs of living.

People are deserting Sydney, with suburbs dominated by high-rise apartments such as Liverpool and Parramatta and those feeling the pinch of interest rate rises the big losers.

Cost of living and a desire for a freestanding home are the major reasons why relocations data has shown the Harbour City is losing residents to regional NSW and interstate at a faster rate than any other capital.

Real estate agents reported high-rise living has fallen out of favour since Covid and the longstanding preference for freestanding houses has intensified.

NSW’s coastal regions and smaller capitals like Brisbane, where housing costs are nearly half those in Sydney, were among the most popular destinations for Sydneysiders making a move.

Damian Wolf, with his dog Sharon, has just moved to Parramatta but wants to relocate to Brisbane down the track. Picture: Tim Hunter

Sydney suburbs with a net outflow of residents, meaning more were moving out than in, featured high-density areas dominated by apartment blocks such as Liverpool, Parramatta, Waterloo and the Sydney CBD.

These were among the areas with some one of the highest rates of housing stress within Sydney because the gap between incomes and home prices and rents was higher.

Other suburbs with high outflows included Dee Why on the Northern Beaches, Rosebery and Alexandria in the inner south and Randwick in the east.

Liverpool and Dee Why had particularly high outflows, with 50 per cent more people leaving than moving in over the last two years, according to the data from removalist booking platform Muval.

The Muval Index data, validated by the University of Queensland, was based on online searches and bookings for removalists across the country.

Liverpool had the biggest exodus of residents.

The university reported the relocations data provided a reliable forward indicator of population trends ahead of the census, having compared previous findings with ABS data from 2020 and 2021.

Blacktown – another suburb with high rates of housing stress, defined as households spending more than a third of their income on rent or mortgage repayments – had 47 per cent more people move out than in.

There was a similar net outflow of people in the suburb of Ryde.

Muval CEO James Morrell said the relocations study suggested most people moved for financial reasons.

About one in 10 households moved to slash living costs while just over a third relocated to reduce expenses in the future.

“Moving is one way Australians plan to combat cost of living pressures,” he said. “(They’re) willing to pack up their lives to find a new home with the right price tag and a more affordable lifestyle.”

There has also been a steady exit from Waterloo.

Sydney remains Australia’s most expensive city by a wide margin.

PropTrack figures showed houses were an average of $220,000 pricier than in Melbourne and $300,000 higher than in Brisbane. Adelaide house prices were lower than Sydney unit prices.

There was also a sizeable difference in rents. Tenants in Melbourne, Brisbane and Perth all paid an average of about $530 per week. Harbour City tenants typically paid $150 per week more.

Demographer Mark McCrindle said the steady exodus of long-term residents amid rising overseas migration into Sydney revealed a disparity between how the city was seen globally and by locals.

“Sydney is still the country’s international gateway. It’s our global city. It’s where the most skilled workers go and it’s got the international brand, but locals don’t feel the same way,” he said.

“There’s two reasons. The first is affordability. The second is liveability. People are questioning if the cost of living is worth it.”

Source: Muval

Mr McCrindle said the move to remote working arrangements, accelerated by the Covid pandemic, may be hastening some residents exit from Sydney.

“One thing Sydney had going for locals, and it was a retention factor, was employment. The CBD was the centre for key sectors. But if you’re working from home you can take your Sydney job with you wherever you go. Sydney has lost its biggest magnet.”

Damian Wolf recently moved to Parramatta but said he hopes to relocate to Brisbane.

“I really enjoy Parramatta, but it’s having growth spurts. There’s construction everywhere,” he said. “I’ve bought property in Brisbane. It was way more affordable. In Sydney I have to rent. And cost of living is much cheaper up there, even just for things like eating out.

“Another great thing about Brisbane is that it’s easier to get around. People there complain about the traffic, but it’s nothing compared to here. Sydney feels a lot more crowded.”

Mr Morrell said internal migration movements were likely to increase due to soaring inflation and rising interest rates.

“The cost of living crunch is set to disrupt millions of Australians and we expect there will be another wave of people looking to move house as we move into 2023,” he said.

Originally published as Why we’re fleeing Sydney: suburbs losing the most people revealed