Almost 1 in 3 Australians Are Planning to Move – Here’s What That Means for Our Housing Market

Have you noticed how many people around you are talking about moving?

It seems like every second person is either packing boxes, searching for rentals, or dreaming about upgrading their home. And the data backs this up.

According to the latest Muval Index 2025, more Australians than ever are on the move — or at least planning to be.

In fact, almost one in three of us (28%) say they’ll be moving in the next 12 months, while another 23% already moved in the past year.

And surprisingly, about a fifth of those planning to move had already moved last year!

That’s a huge amount of churn in our housing market.

But what’s really driving all this movement, and what does it mean for property investors, homeowners, and renters?

Let’s dig in.

Why Aussies are packing up

People have always moved for a mix of reasons: bigger homes, better schools, or lifestyle upgrades. But in 2025, the motivations are shifting.

Here’s what the survey revealed:

• Upgrading to a better home remains the number one reason, though it’s slipped slightly from last year (38% → 35%).

• Reducing the cost of living is climbing fast - up to 32%. No surprise, given the squeeze from high interest rates, rents, and everyday expenses.

• The need for more space is now among the top three, as families grow and remote working habits persist.

• Lifestyle reasons (sea change, tree change) have slipped down the list — they’re still there, but more Aussies are being practical rather than aspirational right now.

In short, affordability and practicality are starting to outweigh lifestyle dreams.

Source : Muval Index

What people are giving up

What’s fascinating is not just why people are moving, but what they’re sacrificing to make it happen.

To find affordability, Aussies are willing to:

• Move further from friends and family.

• Give up the dream of living by the beach.

• Settle for fewer bedrooms, bathrooms, or a missing garage.

• Accept dated interiors or smaller outdoor spaces.

• Even compromise on important things like proximity to schools, work, or public transport.

This shows just how much the housing crisis is reshaping priorities.

Many households aren’t chasing their “dream home” anymore - they’re just trying to find something that works.

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Where Are People Heading?

The report also highlighted some big shifts in internal migration patterns:

• Regional areas continue to attract more movers compared to many inner-city locations.

• The ACT is gaining momentum, with more people moving in than out.

• Inner-city hubs like Brisbane, Sydney, and Melbourne are still seeing more departures than arrivals, driven by affordability issues.

So it’s not that people don’t want to live in cities  - they just can’t afford to live in the inner parts anymore.

Instead, the growth is happening in outer-ring suburbs and regional centres where buyers and renters can get more space for their money.

Source: Muval Index

What this means for property investors

Here’s my take.

Churn creates opportunity. The fact that so many people are moving,  and moving again within a short timeframe,  means demand for rental accommodation will stay high and volatile.

Landlords who provide quality, affordable homes in the right locations will continue to do well.

Expect demand to keep shifting to areas where people can balance affordability, space, and connectivity.

Affordability is now the biggest driver. Forget about luxury add-ons.

Right now, most Aussies just want a safe, functional, reasonably priced home.

The pressure on policymakers will intensify. Unless supply increases and planning approval bottlenecks are cleared, we’re going to see even more stress in the housing system.

So, the big takeaway?

Australians are still on the move, but not always by choice. Many are being forced into tough compromises just to make ends meet.

For property investors, that creates both challenges and opportunities.

Demand isn’t going anywhere. In fact, with population growth surging and supply falling short, it’s only going to rise.

The real question is whether you’re investing in the right locations and the right type of property to meet this new wave of demand.

And if you’re thinking about making your own move — you’re definitely not alone.