Victoria the top destination for people moving in 2023, new figures reveal

Victoria was the top destination for people moving in 2023, but experts warn the state’s booming population is putting pressure on housing supply, services and roads.

New figures show Victoria’s population is growing at a faster rate than NSW, tipped to hit 7 million next month. Picture: Ian Currie

Victoria was the top destination for people moving in 2023, with new figures revealing the state is growing faster than NSW.

But experts are warning that the trend will pose challenges to locals, putting pressure on housing supply, services and roads.

More than 186,500 people decided to call Victoria home in the year to December, up 2.8 per cent compared to 2022.

This was the second highest population rise, by percentage, with Western Australia growing 3.3 per cent or by 98,300 people.

NSW attracted 185,500 people, a 2.2 per cent rise in population numbers taking it to 8.4 million people.

The state’s population is set to hit 7 million next month. Picture: Ian Currie

Demographer Mark McCrindle said Victoria’s population was set to hit a milestone seven million next month, adding it was achieved in a record time.

“It’s a fast growing state amidst the shortfalls in rental availability and cost of housing,” Mr McCrindle said.

“It’s got record population increases and that’s positive from an economic perspective - it’s a challenge for local residents and particularly Melbourne residents.”

International students and skilled migrants made up the bulk of Victoria’s net overseas migration figures, which reached 160,000 people, according to the Australian Bureau of Statistics.

There were almost 26,600 more births than deaths, while 275 more people moved interstate to places such as Queensland than those arriving.

Mr McCrindle said Victoria needed close to 100,000 new dwellings a year just to deal with last year’s population increase, without addressing the shortfalls the state already has.

He said the population growth was no longer just occuring in Melbourne but regional Victoria, too.

More than 186,500 people decided to call Victoria home in the year to December, up 2.8 per cent compared to 2022. Picture: Ian Currie

“Melbourne is really taking the national share of this overseas arrival and really therefore having to shoulder the infrastructure investment for what is national migration,” Mr McCrindle said.

Social analyst David Chalke said if it were not for the migration, Victoria “would be in recession”.

Mr Chalke said state government policies, such as high taxes, were putting small businesses under pressure and pushing landlords to sell properties.

He said this meant more houses available for sale, which was pushing down prices, but also removing much-needed rental stock.

The national population grew 2.5 per cent to 26.97 million in 2023, with net overseas migration hitting a record 547,300 people in 2023.

ABS head of demography Beidar Cho said net overseas migration drove 84 per cent of the population growth, while natural increase accounted for the other 16 per cent.

Opposition immigration spokesman Dan Tehan said: “As Australians struggle with finding a place to live, with congestion on our roads, and with pressure on services like seeing a GP, Labor’s record pace of migration is not sustainable”.