Millennials are leaving Melbourne for these two regional Victorian areas

The index from the Regional Australia Institute (RAI) uses Commonwealth Bank data to track where people are moving across the country.

It found Geelong and Moorabool were number three and four in Australia for migration to the regions. Both areas have consistently been in the top five over the past 18 months.

Bendigo was once again among the most popular regional places for country residents to relocate to, after topping the list at the end of 2023.

The latest index covered the first three months of 2024 and revealed the second biggest population movement in the six years the Commonwealth Bank had been tracking the data.

It also showed net flows were 24 per cent higher from the capitals to the regions than the other way round. That means for every four people who moved to the big cities from the country, five were going the other way.

One crucial stat to emerge from the data was the demographics dominating the city-to-country movement.

When it came to Melbourne, Millennials were the key group leading the exodus, bucking the stereotype of regional movers being Baby Boomer retirees.

The data showed Millennials - who are in their late 20s to early 40s - were mainly leaving from the outer suburbs, particularly the sprawling south-east area of Casey, and Wyndham in the south-west.

Commonwealth Bank executive general manager of regional banking Paul Fowler said this demographic trend had huge implications for government planning.

"Millennials are moving with the prospect of making a contribution to the labour force... and quite possibly with the plans and dreams of growing a family," Mr Fowler said.

"The needs of our regions are very different in light of knowing that it's Millennials that are driving this change.

"In terms of the nature of housing that needs to be made available to cater for this growing population. But also the needs from a physical and social infrastructure point of view. To ensure that we're building and investing behind our towns and cities and communities to ensure we have regional economies that can absorb that population growth and really thrive."

When the last index was released in February, RAI chief economist Kim Houghton said it showed the Victorian government needed to shift its Melbourne-centric housing focus.

"We've really got to look to Victoria to say let's soften that greater Melbourne plan with a greater Victoria plan that allows for growth in those regional places that are going to grow organically whether we like it or not," Dr Houghton said.

But despite the latest data showing the suburb-to-regional trend continuing, the government's May budget didn't put any extra money into housing or enabling infrastructure for the regions.

While Moorabool and Geelong were raking in the biggest share of population, the big centres of Ballarat and Bendigo were ticking important boxes of their own.

Ballarat was the third most popular place for people leaving Melbourne to settle, with only Geelong and the Gold Coast above it.

Bendigo was again a hotspot for regional residents looking for a new location outside the major capitals.

In the previous edition of the index Bendigo had been the top spot in the country for regional relocators.

The newest numbers took it off that pedestal, but it was still the second most popular Victorian location and 11^th nationwide.

The Surf Coast also recorded some huge growth numbers, with net migration tripling over the past year.

The growth was driven entirely by regional movers flooding into the area centred on Torquay, likely driven by Geelong residents moving further afield as a knock-on effect of its own huge growth.

The report showed similar patterns playing out nationwide, with most of the biggest growth areas sitting within 100km of a capital city. Queensland's Sunshine Coast and Gold Coast took out first and second spot on the list, attracting 16 and 9.1 per cent of total net migration.

Melbourne and Sydney were the big losers, contributing 97 per cent of the capital city leavers.

Mr Fowler said the city-to-country trend could no longer be dismissed as a COVID-19 phenomenon.

"This last quarter has seen the index rally 16.9 per cent," he said.

Where that sees us now is a continued and structural level of migration into the regions that's 20 per cent above pre-COVID levels."

Mr Fowler said the regions were simply seen by more people as a better place to live, because there were more jobs, a better lifestyle, and better cost of living.

"We still have over 79,000 job vacancies across regional Australia, which remains near record high levels," he said.

"We also know that our regions represent greater affordability for Australians... and to be able to move to the regions at a different price point in terms of affordability and pursue a home and a family's dreams in that environment is very enticing."

RAI chief executive Liz Ritchie said the obvious desirability of the regions needed to be recognised and planned for by both government and business.

"This sustained trend provides tangible evidence regarding the importance of investing in and supporting the regions, to ensure communities have the services, skills, and infrastructure they need for their growing populations," Ms Ritchie said.

"It is why the RAI has developed the Regionalisation Ambition - a 10-year, 20-goal framework for regional Australia, to better plan for and invest in the growth of regional Australia.

"We know it will take a coalition of people to shift the dials on those goals, but government plays a critical role."

Ms Ritchie said the state as well as federal governments had to take immediate action.

"Developing a National Population and Settlement Plan would also help to enable analysis of high-growth scenarios and their implications for planning, industry growth, and infrastructure and service provision," she said.

"It would provide a cohesive plan for not only regional Australia's future, but the nation as a whole."