WEALTH HUB JOURNAL

Internal Migration Versus External Migration in Australia

Like most of the world today, Australia moves fast. We are a global hub for tourism and business. That means people are always coming and going, both from outside and within our country.

When the coronavirus pandemic struck earlier this year, all of that seemed to come to a halt. Still, the Migration Policy Institute predicts Australia will see a 1.4% population growth rate in July 2020. People are being born faster than they are dying, and migrants are arriving in droves—8.1 migrants per 1,000 citizens! Australia ranks third among all nations for refugee resettlement.

Migration means economic stimulation. For business owners, real estate developers, and investors, that’s a good thing. But what about internal migration? Where are people moving within Australia, and what does that mean, economically, for Australians?

If you are looking to invest money into a certain state or LGA, it’s wise to keep your finger on the pulse of where people are migrating to and from, both internally and externally. Keep reading to learn more about the difference between internal and external migration and recent Australian stats.

What is the difference between internal and external migration?

External migration, or net overseas migration (NOM), is the measure of individuals migrating into a nation from overseas. Internal migration, or net internal migration (NIM), measures movement from one state or region to another within a country. 

In discussions about population, internal migration is too often overlooked in favor of external migration. Everyone wants to know who is immigrating where—but where people are migrating within a nation has just as pressing an impact on local economies. It is the third most important factor in measuring population change (after births and external migration).

Where in Australia are people migrating to?

According to .id, the Gold Coast saw the highest net internal migration in 2017 and 2018, with a 7,441 net internal population growth. The Sunshine Coast was next with a 6,370 net domestic population growth. Moreton Bay followed close behind, and next was Casey. Overall, the states of Queensland and Victoria dominated the list.

Camden and the Sunshine Coast have particularly high percentages of internal migration (72.6% and 77.2%, respectively). These high rates could be due in part to migrants in search of more affordable housing.

Among LGAs with smaller migration numbers, a few stand out for having relatively high percentages of internal migration. Victor Harbor of South Australia owed 161% of its population growth to domestic migration. Eurobodalla owed 129.3% and Mid-Coast 119.3%. All three of these areas are coastal, which could mean they are destinations for retirement-age individuals.

Where in Australia are people migrating from?

Areas that saw a large number of their departures come from domestic migration include Canterbury-Bankstown of New South Wales (22,623 internal departures) and Cumberland of New South Wales (18,757 internal departures).

What these areas tend to have in common is elevated housing costs. Many also saw a high rate of overseas migration, and it’s not uncommon for migrants to settle in one place and leave soon for a better opportunity—often in an urban or suburban area.

Of course, in light of COVID-19, everything has changed. For the time being, migration rates are declining along with the economy. However, these statistics point towards potential future migration trends that we’d all be wise to keep an eye on.

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