Regions offer better options than urban sprawl: RAI

The Regional Population Growth: Are We Ready? report launched in Melbourne today, as part of the RAI's Region's Rising roadshow, looks at the economic consequences of alternative population scenarios that could alleviate a future of 'megacities', and help build regions.

RAI co-chief executive officer Kim Houghton says this new body of work raises serious questions about the type of future Australia has if predicted population growth continues as projected in the outer suburbs of Sydney, Melbourne, Brisbane and Perth.

"The new research has shown that many workers living in our outer city suburbs could be financially better off if they moved to regional Australia," Dr Houghton said.

"Many home owners in our state capitals are paying double the mortgage of their regional city counterparts, but have a similar average wage."

Dr Houghton said with Australia's population expected to grow to 19 million by 2056, Sydney and Melbourne would reach "megacity" status within decades, while Brisbane and Perth would grow to the size of Melbourne and Sydney today.

"But if we continue with our current geographic patterns of settlement, most of that population will end up in the outer suburbs," Dr Houghton said.

In Sydney, Melbourne and Perth, the outer suburban population is forecast to more than double. In Brisbane, the outer suburbs population level will nearly triple.

RAI co-CEO Liz Ritchie says rapid urban population growth creates challenges already clear to residents in our outer suburbs, with high house prices paid by average wages and rising commute distances already emerging as key points in our big Australia debate.

"The average outer suburban Sydney worker earns $80,088, whereas their regional city counterpart has a wage of slightly less at $71,281. Across the country, the difference between the two groups are small and generally less than 10 percent," she said.

"However, the stark contrast emerges when house prices are compared. In Melbourne, the average home in the suburbs costs $776,276, while in Vic's regional centres, the figure is less than half, at $344,365."

Detailed in the new report, scenario modelling found that under the business as usual base case, commute distances in outer Sydney and Melbourne will increase by about 60 per cent and close to 25pc in outer Brisbane and Perth.

"Under the alternative distributed population scenario, where population growth is shared more evenly between outer suburbs and regional centres, commute distances for Sydney would rise by just 15pc, and Melbourne 40pc," Ms Ritchie said.

Bendigo and Adelaide Bank director David Matthews said with job opportunities growing in regional Australia, there is more reason than ever for those living in cities to consider a change in lifestyle.

"Regional Australia has so much to offer, be it more affordable housing, a quicker commute to work and a safe welcoming environment to share with your family," he said.

"With an intelligent and sustainable population strategy, Australians, no matter where they live, can continue to enjoy the lifestyle that we're most famous for around the world."

Today, the RAI has also unveiled its latest tool, MOVE, which allows potential home owners to find out which areas in Australia give them the best chance of paying off their mortgage faster.

By combining the average wage of a particular wage Local Government Area with the average house price, people can quickly find out where they could pay off their mortgage the fastest.

"This new research really poses a significant question to families in the future - will you be financially better off setting up a life in regional Australia? We know the answer could be yes," Ms Ritchie said.