For the first time since the pandemic, Melbourne welcomes more new residents than those leaving, signalling a strong comeback. Data from Muval shows Melbourne is once again a top destination for interstate relocations, regaining its position as Australia’s most popular city.
Between February and April, Melbourne accounted for 30% of all capital city moves, with outbound movement at a record low of 25%. The city saw a positive net migration of 13% in February and 2% in April, the first such gains since January 2020. During the pandemic, migration plummeted, with losses as high as 64%. However, Melbourne is now recovering.
Muval CEO James Morrell noted that Melbourne took longer to rebound compared to other cities but is once again a top destination, especially for those relocating from Sydney. Despite the positive migration, housing shortages remain a concern. Morrell noted that while Melbourne’s market isn’t as tight as Brisbane’s, availability is still an issue.
HIA senior economist Tom Devitt said current migration levels are closer to long-term averages, though not as strong as pre-COVID.
Rising construction costs, driven by new building codes and taxes, could further strain housing affordability. To address these challenges, the HIA has suggested reforms, including pausing regulation changes, fast-tracking land releases, and promoting higher-density construction.
These measures are crucial for addressing the housing crisis as Melbourne prepares for the spring selling season.
