Immigration up but which state is most popular?

By Oonagh Reidy

Australia’s population has swelled by almost 350,000 in the last year but there’s one state that attracted more than any other.

Victoria, and its capital city Melbourne, are attracting unprecedented numbers – thanks to its array of job opportunities and access to affordable housing, relative to its neighbour Sydney.

Australia’s population jump was fuelled by a spike in net overseas migration (incoming minus outgoing migrants) of just over 193,000 in 12 months.

The national population swelled by 348,700, totaling 24.2 million by the end of September 2016, according to the Australian Bureau of Statistics. The bulk of immigrants flocked to the eastern seaboard.

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Victoria enjoyed the largest population increase, up 127,500, followed by NSW (+109,600) and Queensland.

‘A lot cheaper’

The reasons for Melbourne’s population spike are simple – more jobs and cheaper housing, according to Shane Garrett, Housing Industry Association Senior Economist.

“Almost all jobs [in Australia] were created in Victoria – both full and part-time over the last year”, as full-time employment fell nationally.

“There is a huge incentive for people to live in Melbourne over Sydney,” Garrett said. “Melbourne is a lot cheaper if you want to rent or buy.”

Victoria is also attracting migrants from regional Australia including Northern Territory, South Australia and Tasmania.

However, wages are higher in Sydney but the gap in house prices “much wider,” he added.

Annual earnings in Sydney are $92,400 while Melbourne average wage packet is $83,900 but housing is 30 per cent more expensive, with the median Sydney home costing $795,000, the latest figures show.

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Australia’s most populous state, NSW, saw more people exiting the state than moving in, known as a net outflow of interstate migration.

“This is mainly down to retirees selling up and heading to year-round sunnier shores of Queensland,” Garrett told Yahoo7 Finance.