Thinking of a Tree Change? Housing Affordability and the Regional Price Gap

Growing numbers of younger Australians are opting for regional living. For many, the lure of a seachange or treechange is simple. You can often get more home for the same money, or spend less for something similar.

With property values continuing to climb, the median home price across our combined capitals has now pushed past the $1 million mark. That has plenty of Aussies rethinking the city plan and swapping skylines for regional horizons.

Relocations from capitals to regions are outpacing moves in the opposite direction, according to the latest Regional Movers Index. And recent CommBank research shows more than 5.3 million Australians, about 37% of city dwellers, would consider a tree change.

Gen Z (aged 18–29) is leading the trend, with almost half considering a regional move. The Regional Australia Institute (RAI) also found that more affordable housing is a key appeal for more than two-in-five would-be tree changers. That rises to one-in-two Gen Xers (1965–1980).

So, are homes really cheaper once you get beyond the big cities? And what should buyers watch for when buying among the gum trees, where the pace is slower but the decisions still matter, especially when Australia’s house affordability is a key reason people are making the move?

Australia's housing affordability and the $250,000+ gap

There’s no getting around it. Regional Australia can offer a generous serving of housing affordability, especially if your budget is feeling squeezed.

As a guide, the median home price across our combined capitals is currently $1,002,520. Across regional markets, the median value is $743,672. That is a difference of $258,848.

That gap can help in a few practical ways. It can reduce property-related costs like stamp duty. It can also help first home buyers with a smaller deposit bring forward their buying plans, or buy a house rather than an apartment.

A lower purchase price may also mean you need to borrow less. That can translate into lower home loan repayments, which is often the real win when you are comparing locations. For many buyers, that repayment difference can make the budget feel more manageable each month.

Australia house affordability and what happens to price growth

Let’s clear up a couple of myths.

Yes, you can get great coffee outside the cities. And no, regional areas do not always lag behind state capitals for property price growth.

The latest house price data from Cotality shows regional home values rose 10.3% over the last year. That outpaced the 9.2% gains across state capitals. It is not a one-off result, either.

Regional home values climbed 57.4% over the past five years, compared to 42.8% across the combined capitals. The Australian Housing and Urban Research Institute says this reflects a knock-on effect from the long-term trend of people migrating out of cities and into regional areas.

If you are weighing lifestyle plus Australia housing affordability, these numbers matter. They show that “cheaper” does not automatically mean “flat” when it comes to growth. It also means you should still do your research on your suburb, because not every regional market moves at the same speed.

Could a tree change affect your home loan eligibility?

If you are thinking about pulling stumps from the city and moving to the regions, start with your job prospects. Many regional locations have healthy job markets, but it is worth checking what is realistic for your occupation and qualifications.

You may not need to change jobs at all. An RAI study shows close to half (47%) of city dwellers planning a regional move would stay in their current job on a remote or hybrid basis.

Either way, it pays to talk through your work arrangements before you apply. Home loan lenders like to see stable employment when you submit an application. Beyond that, the home loan process is much the same, whether you plan to buy in a capital city or a country town.

For many buyers, housing affordability is the headline. The finer detail is your borrowing position, your deposit, and how the repayments land once the loan is in place. Housing affordability is not just about the purchase price. It is also about how comfortably you can hold the property over time.

Ready to Explore a Regional Move? Talk to Osinski Finance

If you are considering farewelling the big smoke for country living, Osinski Finance can help you map out the numbers before you commit. We work with Australians across home loans, whether you are a first home buyer, upgrading your place, or investing in a property.

Get in touch today, and we will run through your situation. 

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