Gen Z discussion: Rising living costs are reshaping where young people live

Years ago, young people generally flocked to major cities for better opportunities, but Gen Z seems to be doing quite the opposite, as city living has become too expensive.

New research commissioned by the Regional Australia Institute showed that in the next five years, 49% of Gen Z, aged 18 to 29, are considering moving further away from the city because regional areas mean lower cost of living, cheaper housing, and it’s closer to nature, Financial Review reported.

Nearly the same percentage of Millennials (41%) are planning the same, compared to Gen X (37%), the Silent Generation (25%), and Baby Boomers (25%).

In fact, the YouGov survey, conducted in partnership with View Jobs, found that nearly four in 10 (37%) surveyed adults living in cities said they would consider such a move.

Ageing Baby Boomers (64%), who are currently aged 62 to 80 this year, however, are planning to stay in their cities, as it’s closer to healthcare facilities and their families.

Gerard Burg, head of research at information services provider Cotality, said that one of the most sought-after regional destinations in Australia is Queensland’s Sunshine Coast because of its proximity to Brisbane. However, with the median home price of AU$1.2 million (S$1.08 million), he said this suggests the younger generation is not the one moving there.

Other regional areas seeing more people move in include Geelong, southwest of Melbourne, and Lake Macquarie.

Online, Australians shared they have indeed noticed how Sydney’s affluent suburbs felt “kind of hollowed out” lately.

“Just boomers and people required for boomer services (cafes, healthcare, etc). They feel a bit like one of those American retiree communities, just lacking the normal vibrancy from having groups of people at different stages of life,” a commenter wrote.

Another pointed out that a few public schools in Eastern Sydney are looking at closing because there aren’t any families enrolling their kids.

While others were concerned if there are enough job opportunities in regional Australia, one who owns a software company and manufacturing business in rural Victoria said there are plenty of opportunities in rural cities. /TISG

Read also: Two-thirds of Gen Z plan to switch jobs but struggle to stand out in a competitive market