Brain drain: Young, bright – and out of here

More than 41,000 young Sydneysiders have fled the Harbour City for cheaper regional housing, as the median house price hits a staggering $1.7 million.

Young Sydneysiders are saying goodbye to the Harbour City in big numbers.

Exclusive:A brain drain of the youngest and brightest people are leaving Sydney in record numbers to move to regional areas in search of affordable housing.

Data crunched by audit giant KPMG shows young Sydneysiders heading to areas including the Southern Highlands, Shoalhaven, Illawarra and Lake Macquarie in droves.

KPMG urban economist Terry Rawnsley said more than 41,000 people left the Harbour City in search of cheaper housing last year.

“Sydney remains right up there as one of the world’s most expensive cities, with the median house price now at a new record high of $1.7m,” he said.

“This unenviable title has meant it’s not surprising more than 40,000 residents left the city in the last year in search for more affordable options.”

Has Sydney lost its shine for young people? Picture: Damian Shaw.

Mr Rawnsley said the biggest group leaving Sydney were aged between 25 and 44.

Brisbane remained the most popular destination for Sydneysiders, with more than 5000 people heading north but the number dropped as more people moved to regional areas.

“While property prices in other major cities like Brisbane and Melbourne are relatively more affordable than Sydney, they are climbing to unattainable levels, forcing many to look beyond the major capital cities altogether. Cities such as the Gold Coast, Wollongong, and Newcastle have strong economies and are in need of more workers,” Mr Rawnsley said.

Urban Taskforce CEO Tom Forrest said the cost of housing was driving young people out of the Sydney. Picture: Richard Dobson.

“The affordability and lifestyle benefits, as well as their close proximity to Sydney are drawing many families to larger regional areas like the Southern Highlands, Illawarra, and Newcastle, where they can lay down roots, without losing their connection to Sydney entirely.”

The figures showed migration to the Southern Highlands and Shoalhaven jumped by more than 50 per cent and the Illawarra by almost 33 per cent.

The exodus from Sydney is compounded by the departure of 1757 essential workers, including cops, teachers and nurses, who have moved to regional areas in the past 18 months.

Tom Forrest, chief executive of the Urban Taskforce, said the latest data of interstate and intra state migration confirms that the cost of housing is driving young people out of the Sydney basin.

“The loss of our most productive young to the regions and interstate renders Sydney a potential retirement village,” he said.

But the loss of Sydneysiders has not eased demand for housing, as more than 120,000 migrants moved to the city from overseas.

Originally published as Brain drain: Young, bright – and out of here