Money crisis sparks capital city exodus as Australians embrace 'new frontier': 'Hundreds of dollars better off'
Thousands of Australians are leaving the bright lights of the big city behind as they try to cut down costs. New research from Finder has revealed that one in eight people surveyed had relocated away from a capital city in the last three years to get on top of their savings.
The study found this exodus is far from over, with a further 1.5 million people tipped to move somewhere cheaper by 2028. Finder's money expert, Rebecca Pike, told Yahoo Finance the savings from ditching a city like Sydney can be huge.
“If you can continue earning what you were in a capital city, you will be hundreds of dollars better off every month," she said.
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“Banking that difference instead of just breaking even can lead to much greater wealth long-term.”
Pike said Aussies are "sick of scraping by" after years of interest rate hikes, soaring rent prices, and increasingly expensive supermarket trips.
Finder discovered that saving on living costs was the most popular reason for the city move, followed by people wanting to be able to save for a house (25 per cent), to save on mortgage or rent costs (14 per cent), and to be closer to family (14 per cent).
Have you left a capital city due to cost of living? Email stew.perrie@yahooinc.com
The most popular relocation was to a regional city or town, while others opted for another cheaper capital city.
“There are plenty of budget suburbs delivering better value – households might just have to expand their search further out," Pike told Yahoo Finance.
But she warned that moving somewhere cheaper might not necessarily equate to a better life.
"It might not be worth [it]... if your quality of life diminishes or if you're then going to spend more on car costs driving to see friends or family that still live in the city," she said.
Property prices are one of the big draw cards for moving regional
Zoe Carney relocated from Melbourne to a small town on the way to Mildura to work as a rural teacher.
She told Yahoo Finance the high cost of living was a major factor spurring her move and she's now saving an extra $150 per week.
The biggest saving was in her rent.
“In Melbourne, I was spending about $400 a week... but I was also living in my own one-bedroom,” she said.
“Now, I have a two-bedroom unit with a courtyard so I have way more space now and this is only $320 a week."
