Young Australians are looking to move out of the cities and into regional areas in increasing numbers, but new data shows many of the areas they are moving into are facing severe housing shortages.

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Figures from data consulting firm Suburbtrends reveals several parts of regional Victoria and southern NSW are already facing severe supply pressure.

Where do you move and who will you live with?

These are two common questions young people ask when moving away.

House availability has become an issue in regional towns amidst a supply issue. File picture

With more young people moving to regional towns than ever, what does that actually look like?

Taking the next step

When Ashleigh Lamming moved from her hometown to regional Victoria she said she was pleasantly surprised when searching the rental market.

"It was definitely cheaper than the big city, it was a good surprise," she said.

Although cheaper, the amount of housing was limited, but for many young people including Ms Lamming, a suitable house is more important than affordability.

"There was a few options on flatmates.com, it was a bit daunting, I hadn't lived out of home it was a bit stressful and wanted to make sure my new housemates would be good."

"There was more (rentals) than I was expecting."

February 2026 data from Suburbtrends reveals that regional Victoria and southern NSW remain under 'severe supply pressure'.

Five of the six regions they analysed recorded vacancy rates below one per cent in regions including Ballarat, Bendigo, Geelong, Albury, Wodonga and Warrnambool.

This is not unique to regional cities, Reiwa.com.au shows that Perth's rental vacancy in February 2026 sits at 2.2 per cent, down 0.4 from January.

Deakin lecturer in education James Goring, said it's not always as simple as just 'rocking up' in a new town.

"There needs to be a mechanism for culturally and linguistically diverse young people to move to an area and access housing, as well as mechanisms for young people to be able to speak up and be heard if their housing's inadequate," he said.

Monyque Watson-Jones moved regional to regional, but still faced similar problems and possibilities.

Ms Watson-Jones said moving to a regional town can be challenging but, also rewarding. Picture supplied

"Moving on my own was scary. I only knew my friend and her family, so I had to build friendships, routine and a home from scratch," she said.

"Luckily I already had a job lined with the same company I'd worked for before which made settling easier. Housing was tougher, but the flatmate app helped me find a share house that's affordable and in a nice area."

Who's responsible?

Many regional towns have industries that require workers from out of town, dairy, meatworks and farming are three examples.

The Victorian state government introduced a $1 billion fund to build 1,300 social and affordable homes across rural and regional Victoria.

Short-term stay levies have been introduced in an effort to put more long-term rentals back on the market.

Short-term stay levies have been applied in states around Australia to free up housing for longer-term residents. File picture

The levy is aimed at platforms like Airbnb and Stayz.

Victoria introduced a statewide levy, NSW floated the idea in 2024 but is yet to introduce one and Brisbane city also has a short-term levy, but not regional Queensland.

Warrnambool City Council mayor Ben Blain is aware of the impact short-stay accommodation has on the long-term rental market.

"The impacts short-stay accommodation has on the long-term rental market, as well as the benefits it provides to travellers, have been very well documented," Cr Blain said.

Mr Goring said big industries and state governments need to work together.

"State government and big industries and places that attract a lot of workers, they need to put their heads together collectively and recognise the problem," he said.

"Regarding youth and Austudy allowances as well, they're not keeping up with the costs of housing, many young people are moving to regional areas to study, become nurses, teachers and they need affordable housing.

"I think at this moment a collective response across public, private and community housing, as well as identifying underutilised community and commercial spaces to create affordable housing solutions."

Suburbtrends founder Kent Larder said lack of housing can lead to factors including stress.

"For renters, this translates into reduced negotiating leverage, upward pressure on asking rents, and significant affordability stress, particularly in lower-income suburbs where households are already spending above 30 per cent of income on rent," he said.

Rite of passage

Moving anywhere is for a reason, whether it is a new job, a change of scenery or another reason that benefits the person moving.

Moving regionally, however, can not only benefit the young person, but also the town.

Bachelor of Education lecturer at Deakin James Goring. Picture supplied

Ms Lamming said she was glad to move out of home.

"When I first moved it was difficult as my housemates were from here, but since moving with people who were also not from here it has been great and you get to meet new people."

Mr Goring said young people in regional towns can impact every industry positively.

"It's important because young people bring energy, creativity and arts and music to a place, you can understand in economic terms it's extremely valuable to a place and community.

"Because if you don't have young workers the arts and music scene will be impacted, but not only in hospitality and nightlife it can affect any industry as young people want to move to a regional town and cut their teeth."

For Ms Watson-Jones, although it's been a challenge, the experience of living regionally has given her memories she wouldn't have got anywhere else.

"Moving regional - even from one regional town to another, has given me independence, new opportunities and fresh start."