Millennials still want to escape to the country but houses to buy have been soaked up

And also the latest population statistics show regional people have started drifting back to the cities.

But the data also shows the pandemic-inspired movement to the country is still 30 per cent higher than before COVID-19 struck.

Millennials, people aged from 24-40 years, continue to make up the biggest proportion of people moving to the regions.

Three of the top five highest-growth local government areas in the year to June 2022 were in South Australia with young people making up the largest proportion of movers from cities.

Mount Gambier experienced a 90pc rise in regional movement over the year, while capital-city people moving to Port Augusta rose 63pc and the Yorke Peninsula 50pc.

The overall number of those relocating from metropolitan areas has fallen 16.5pc compared with the previous quarter, according to the latest quarterly Regional Movers Index made public by Commonwealth Bank and Regional Australia Institute today.

The lack of available housing stock to buy and rising rents has made it more difficult for city people to move.

Millennials made up the largest age cohort of people moving to the regions pre-pandemic, and they have increased their share since the pandemic.

Population statistics show movers are getting younger.

In NSW, the median age of the average regional mover fell from 37 years to 33 years pre-pandemic compared to during COVID-19, and from 38 years to 34 years in South Australia, and from 35 years to 33 years in Queensland.

The Regional Movers Index, developed by the Commonwealth Bank and the RAI analyses the quarterly and annual trends in people moving to Australia's regions.

Commonwealth Bank regional and agribusiness executive general manager Paul Fowler said despite the latest fall, the level of net migration still significantly outstripped the two years before the pandemic.

"Regional economies are booming, many businesses are investing and innovating to strengthen their capabilities and grow, and this is creating new employment options for jobseekers in many regional towns and cities across the country," Mr Fowler said.

"This is particularly in key sectors such as agriculture and manufacturing where there continues to be strong production and revenue growth."

RAI chief executive officer Liz Ritchie said people are still voting with their feet and looking for the good life in regional Australia.

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But the recent easing of movement to the regions should take the pressure off housing demand and provide breathing space for regions to plan for the future.

"We know people are happier when they choose a life in the regions, but investment in creating a sustainable model for regional Australia to accommodate the changing nature of our populations trends is needed," Ms Ritchie said.

Some economists have questioned the ability of regional areas to "cater to huge inflows of new residents".

"Now is the time for a new national population plan at the Federal level, that considers future settlement patterns to ensure regional communities have the services and infrastructure they need to help them grow," Ms Ritchie said.

The major coastal cities close to the east coast capitals are still the main destinations for city-dwellers making a regional move.

The Gold Coast welcomed 11pc of all capital-city movers, Sunshine Coast 6pc, Greater Geelong 4pc, Wollongong 2pc and Lake Macquarie 2pc.

Other local government areas such as Moorabool in Victoria grew significantly, while Bathurst in NSW also featured in the top five highest growth LGAs for the first time.

Mr Fowler said Bathurst saw a 39pc increase in annual growth. It is a rapidly growing inland centre with a diverse range of thriving industries including agriculture, education, healthcare, manufacturing, and construction.

"Bathurst is a renowned for its innovation. There are a growing number of businesses in the region and many exciting projects that are driving employment and growth, benefiting the entire region over the longer term," Mr Fowler said.

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