Lake Macquarie, Maitland and Cessnock are among the most sought-after locations in regional NSW for people looking to move out of Sydney, according to the latest regional movers index.
The index, a partnership between the Commonwealth Bank and the Regional Australia Institute, analyses quarterly and annual trends in people moving to and from Australia's regional areas.
The latest data shows two-in-five people (39 per cent) moving from cities, in net terms, headed to regional NSW in the 12 months to September 2023, up from 26 per cent in the previous 12-month period.
In comparison, regional Queensland accounts for 33 per cent of net capital outflows, down from 37 per cent a year ago, with regional Victoria the third most popular destination accounting for 21 per cent of all net capital outflows.
City dwellers making the move to the regions continue to flock in high numbers to local government areas in close proximity to Brisbane, Melbourne and Sydney, with Lake Macquarie and the Gold Coast proving particularly popular.
Lake Macquarie had a 5.4 per cent share of the net capital-regional migration in the last quarter of 2023.
Other increasingly popular LGAs in regional NSW included Greater Hume Shire, Ballina, Cessnock, and Maitland.
Regional Australia Institute chief executive Liz Ritchie said Sydneysiders were leading the charge when it came to regional relocations.
"When you look at all the people who left cities for the regions in the last year, 80 per cent of them came from Sydney. In the 12 months to September 2022, it was just over 60 per cent. It suggests that the bigger our cities get, the stronger the draw to our wonderful regions becomes," Ms Ritchie said.
She said the data showed Australia continued to have a highly mobile population, with the overall number of movers this quarter, at its third highest level since March 2018.
"RMI data is repeatedly showing the exodus of people from capital cities wasn't a short-lived phenomenon due to pandemic lockdowns, with capital to regional migration levels currently 11.7% above the pre-Covid (2018 and 2019) average," Ms Ritchie said.
"It's why we continue to work with government, industry, business and community on the RAI's Regionalisation Ambition - a 10-year, 20-goal framework designed to help decision makers prepare for an Australia where more people live in our regions.
The Regionalisation Ambition includes a goal to increase regional Australia's population to more than 11 million by 2032 - up from the forecast 10.5 million.
"In September there were 91,400 jobs advertised in regional Australia, which is partly why we're seeing such strong migration to our country communities. But to support our expanding regions, we need to ensure rental vacancy rates rise, building approvals keep pace with population growth and services like childcare and transportation are at suitable levels."
