The ability to work from home and a cost-of-living crisis has seen many households swap city living for country towns. But with regional house prices gaining momentum, a tree-change isn’t as cost effective as it was five years ago.
The latest PropTrack Home Price Index shows regional prices have surged 65% over the past five years.
According to REA Group senior economist Anne Flaherty, we’re still seeing more people swap cities for regional towns rather than the other way around; though a growing regional population has seen a stronger house price as a result.
Prices in regional areas climbed 0.4% in July 2025, with annual growth of 6.5% outpacing the combined capitals, which rose 4.3% over the year.
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“The main reason people went to the regions pre-Covid was to work in those areas or seek a green change for retirement,” Ms Flaherty said.
“Now we’re seeing more remote city workers living there because they only need to come to the city a few days a week,” she said.
“They wouldn’t have been able to live in the regions in the past, but a flexible work place allows them to have that choice, hence the cohort heading to regions to live permanently.”
Homes in popular tree-change towns that are within commuting distance to a capital city, such as Berry in NSW, often come with a premium price tag. Picture: realestate.com.au
While it can offer better bang-for-buck, homes within commuting distance to a capital city may not be that much cheaper – especially for buyers seeking towns with rich lifestyle factors such as good amenities, restaurants and shops, public transport, and a community feel.
Sydney’s median house price of $1.56 million is on-par with popular tree-change towns such as Bowral ($1.53m) and Berry ($1.6m), while Katoomba in the Blue Mountains offers better bang-for-buck with a median house price of $850,000.
With a median house price of $1.07m, Brisbane sellers aren’t much better off in popular tree-change locations such as Tamborine Mountain ($1.05m) in the Gold Coast hinterland or Montville ($1.35m) on the Sunshine Coast.
Houses in WA’s Margaret River cost a median $889,500, not much lower than the Perth median of
$926,000.
Adelaide residents looking to make a tree-change are faced with median house prices of $1.2m in historic Hahndorf, compared to the capital city median of $916,000, though nearby Mount Barker ($740,000) offers better value.
Historic tree-change town Hahndorf near Adelaide has seen prices soar 24% in the past 12 months. This four bedroom home is on the market for $1.45m. Picture: realestate.com.au
Ms Flaherty says those earning higher salaries are more likely to move to the regions nowadays – a great bang for your buck situation because of the flexibility to only travel to the city a few days a week. It might affect their hip pocket, but a stronger earning power means they don’t feel the economic pinch as much.
This four bedroom home in Margaret River is accepting offers within the mid $900,000s. Picture: realestate.com.au
Buxton Real Estate’s Mark Nunn sells homes in regional Victorian towns like Daylesford and Ballarat – and is the managing agent for House No. 3 on the new season of The Block, which is set in Daylesford. He’s still selling homes to families looking to make the tree-change and want a stress-free alternative to city life.
The regional housing boom of 2021-22 might be over; but Nunn says the demand for regional homes is improving in 2025.
“In 2021-22, the real estate market was a very buoyant time thanks to very low interest rates of 2-2.5%,” Mr Nunn said.
“The market drastically changed in 2023-24 thanks to 14 rate rises in 18 months – it really shook the market up,” he said.
The median house price of tree-change town Daylesford is $820,000, compared to $983,000 for a house in Melbourne. Picture: realestate.com.au
“It has slowed down a lot since, but with two interest rate reductions this year, and potentially another before Christmas, it’s putting confidence in the regions like Daylesford and Ballarat once again.”
He recently sold a property to a Melbourne family who traded their $2 million dollar home for a $950K regional one – lowering their mortgage for better quality of life – albeit a lot further out of the city.
Another family recently sold in Melbourne to buy a brewery in Daylesford for a tree-change and career pivot.
“Many buyers are still Melbourne families who decide they don’t want to be a slave to their mortgage in the city – that is the bottom dollar,” Mr Nunn said.
“If they can halve their costs and get a better home and still access good schools, then going to the regions is a viable option.”
Declining affordability in popular tree-change towns means many relocaters are higher income earners. Homes in WA’s Margaret River have soared 17% over the past 12 months. Picture: realestate.com.au
Artist Rosa Fedele recently relocated to Trentham, Victoria with her husband Mark Garrett. Having spent their adult life living in Balmain, Sydney to raise their family, the couple opted for a tree-change in 2018 and went to the southern highlands of NSW. They just moved a few months ago to Victoria, to be closer to their adult children who live in Melbourne.
“We wanted a quieter life outside of the city, and I also wanted to expand my art practice which was proving difficult to have a studio in the city,” said Ms Fedele of the benefits.
Artist Rosa Fedele made the tree-change to Trentham in regional Victoria. Picture: rosafedele.com
“The community in regional towns is very supportive too,” she said. “A downside is I can’t access art supplies unless I order them online or go into the city to purchase what I need, but for me the benefits outweigh this.
“Being in Trentham is a place where we can breathe and find a carpark with no meters around which is a real headache if you’re in a major city.
“But of course, if we need something from the shops quickly, it’s more than a five-minute drive.”
Trentham was recently named Victoria’s Top Tiny Tourism Town. Picture: realestate.com.au
Recently crowned the Best Victorian Tiny Town at the Victorian Tourism Awards in July this year, Trentham is proving a popular spot for home sales. It’s where hatted restaurant du Fermier is located too.
“When people stop to say hi to you in Trentham, they actually want to hear the answer,” says Fedele of the perks of country living.
“In the city, people are head down and rushing all the time. It’s a wonderful way to make new friends and stay connected here.”
According to Geelong real estate agent Tony Moorfoot, those looking to move to the south coast of Victoria are usually from other regional towns like Warrnambool.
“It is still cheaper and easier to find a home regionally,” Mr Moorfoot said.
These days a median house in regional Australia will set you back $646,000.
“I’m seeing a mix of interstate investors looking for properties, to those who live locally and want to buy a bigger home,” he said. “You get great access to the surf coast and it’s not far from Melbourne – affordability in Geelong outweighs what you get in Melbourne.”
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