From cities to suburbs – how internal migration is reshaping Australia

Australia’s population is booming, with certain suburbs experiencing huge growth due to internal migration rather than overseas arrivals, according to a recent story on realestate.com.au.

The latest Australian Bureau of Statistics (ABS) data reveals that while most of the country’s annual population increase of around 500,000 people is driven by migration, many of the fastest-growing suburbs are expanding due to Aussies relocating within the country.

So, where are people flocking to? Mostly, the suburbs on the fringes of Melbourne and Sydney – places where new housing estates are rapidly transforming farmland into bustling communities. These areas offer affordability and space, making them attractive to those moving from more densely populated inner-city locations.

The suburb leading the charge is Fraser Rise-Plumpton in Melbourne’s northwest, which added 4,316 residents in just a year. Close behind is Rockbank-Mount Cottrell, also in Melbourne, followed by Box Hill-Nelson in Sydney.

What’s interesting is that overseas migration accounts for only 4% of the growth in these top five areas – meaning most new arrivals are Australians shifting from other parts of the country, according to the story.

There’s also a distinct trend when it comes to new migrants settling in Australia. While the rapidly growing suburbs on the fringes rely on internal migration, overseas arrivals gravitate towards high-density inner-city areas.

Places like Carlton and Melbourne CBD–North in Victoria, along with Macquarie Park–Marsfield in New South Wales, have seen significant overseas migration numbers that outweigh both local migration and natural increases.

The reason? Many migrants, especially international students and workers, opt for rental properties near universities and job hubs. These inner-city locations provide convenience, strong rental yields, and easy access to employment opportunities, making them hotspots for newcomers.

Despite the massive influx of residents into certain suburbs, the country still faces a rental housing supply crunch. Last financial year, Australia built 62,000 fewer homes than needed, meaning demand continues to outstrip supply.