According to the Australian Bureau of Statistics there has been an increase in migration in Coastal areas and lifestyle markets. Recent research has showed that there was an increase in migration before the financial crisis however, since the end of the financial crisis, interstate migration has slowed and most lifestyle markets have underperformed capital city housing markets due to both declining housing demand and a weaker tourism sector. A recent RP Data report stated that retirees were previously migrating to these areas but recent data shows families are now leading the latest increase.
According to Corelogic RP Data, 14 out of 25 of the top 25 Regions are in the outer fringe of capital cities where population growth is bring driven by new housing and 15 of the 25 would be considered lifestyle Regions. These regions include; South Moreton Bay Regional Council area (of which North Lakes and Mango Hill are a part of is one of them),Sunshine Coast, Gold Coast, Geelong, Richmond-Tweed, Mornington Peninsula, Mid North Coast, Central Coast, Hunter Valley excl Newcastle, Southern Highlands and Shoalhaven, Bunbury, Mandurah, Sydney-Outer West and Blue Mountains, Illawarra, Wide Bay and Latrobe-Gippsland. Most people who migrate to these regions are aged between 0-14 years and between 25-64 years of age. Meanwhile migration of 15-24 year olds is low and migration of those over 65 years of age is not as strong as younger children and those of working age. This data indicates migration within the Coastal and lifestyle markets is being driven by young families.
“Coastal and lifestyle markets have generally greatly underperformed in terms of value growth relative to capital cities over recent years while more recently the value is starting to rise in most of these regions. This would seemingly support this data given increased demand for housing (with migration as a source) often leads to increases in home values”, said Corelogic RP Data.
The recent increases in home values in capital cities, which has resulted in deteriorating affordability, has forced many younger families out of capital cities – another key factor boosting migration of lifestyle markets. Many Australian workplaces are also becoming more flexible meaning that people can work from home or commute to the office only a few times a week which makes the move to a lifestyle market more appealing.