Why NSW lost 34,000 people last year to QLD, Victoria

Cost of living in Sydney and a crippling housing market are to blame for the mass exodus of NSW residents to neighbouring states. See how many left your community last year.

Maddison Thompson and Ryan Wallis have joined the drift out of NSW, moving from Sydney to Melbourne.

A massive 34,000 residents left NSW to live in other states in the past financial year, as the cost of living crunch and housing crisis sees young people look to Melbourne and southeast Queensland for reprieve.

The City of Sydney local government area witnessed the highest level of internal migration of any community in NSW in the 2022-23 financial year, with more than 6400 CBD dwellers packing up and moving out of the area.

Parramatta saw 5528 residents leave the community, 4675 residents left the Canterbury-Bankstown area, followed by 4286 people leaving the Cumberland local government area in the same period.

Randwick in the city’s east saw 3023 people leave the community.

Maddison Thompson and Ryan Wallis, moved from Sydney to Melbourne.

Other western Sydney communities saw thousands of people move into the neighbourhood, including more than 3600 additional people calling The Hills Shire home, while neighbouring Blacktown welcomed 2070 new residents.

Demographer Glenn Capuano, of .id (Informed Decisions) said NSW consistently loses population to other states every year since 1980.

“It (NSW) has the most established population, but it is the state that has the most overseas migration,” he said. “We see migrants settle in NSW and then move to Queensland, while relatively fewer residents move from Queensland to NSW.”

The demographer revealed the Gold Coast and Sunshine Coast were go-to destinations for Sydneysiders packing up and leaving the state.

Maddison Thompson and Ryan Wallis, moved from Sydney to Melbourne.

“The number one LGA for new residents to the Gold Coast is actually the Northern Beaches, followed by Sutherland, Blacktown, and Central Coast,” he said.

“Young people who live in the northern parts of the state, we are seeing them move to Queensland, while young people in southern areas of the state go to Melbourne.”

Mr Capuano said cost of living pressures and house prices were “significant drivers” for young people leaving the state.

“What we see is once a few people move, many follow,” he said.

“There is also a lot of movement out of Sydney to regional areas – people in the city are looking for a tree change or sea change.”

Former Sydneysiders Maddison Thompson and Ryan Wallis left the Harbour City last year for Melbourne.

“We’ve always wanted to live somewhere else before we ultimately settle down to raise a family in Sydney,” Ms Thompson said. “We had spent time in Melbourne for leisure and work and really resonated with the area and could see ourselves living here.

“As Ryan started travelling to Melbourne more frequently for work, he asked if I’d consider relocating, and I agreed that it would be fun to give it a go and live somewhere else.

The couple both said “affordable rental properties in Melbourne” also made the move appealing.

“(Melbourne) is always buzzing with fun events and opportunities to explore,” Ms Thompson said. “The food scene is a noteworthy aspect of Melbourne that is nothing short of amazing.

“We also adore the apartment we live in and it is significantly better value than our living space in Sydney for a cheaper price.”

The couple also decided to purchase a home in Queensland, rather than invest their hard-earned cash in NSW, to make sure they got the best value “within our budget”.

“Being distant from family and friends, and navigating the social aspects of building a new community from scratch in an unfamiliar place, can be daunting yet rewarding.

“Like anything in life, though, you never know until you try, right?”

Got a news tip? Email [e-mail]

Originally published as Why NSW lost 34,000 people last year to QLD, Victoria