Exploring the Shift: Why Australians Abandon Sydney Due to Cost of Living

Over the past few years, a noticeable trend has emerged as individuals and families are reconsidering their residence in Sydney, Australia, due to the exorbitant cost of living. High rental prices, expensive housing, and overall living costs have led many to relocate to other cities and regions within the country in search of a more affordable and less stressful lifestyle.

The Sydney Dilemma

Sydney, often renowned for its glamorous lifestyle and vibrant cities, is now grappling with a significant challenge: the cost of living. As an urban center bustling with both international and domestic talent, Sydney has earned its reputation for being an economic powerhouse. However, this status comes with a high price tag. The average cost of living in Sydney is notably higher than in many other Australian cities, making it a daunting prospect for those aiming to settle down and build a future.

Leaving Sydney for Other Cities

Many residents and recent immigrants are opting to move to other Australian cities like Brisbane, Melbourne, or Adelaide. This trend is not driven solely by economic factors but also by the quality of life that these cities offer. Brisbane, for instance, is gaining popularity for its friendly communities and affordable housing. Similarly, Melbourne and Adelaide are attracting residents looking for a balance between big city amenities and the cost of living.

Real-Life Experiences

Many have recounted their journey of leaving Sydney. One such experience is the story of John, who now lives in the city of Bundaberg, Queensland. In an interview, John shared, “Many ex-Sydney and ex-Melbourne people have settled in Bundaberg. The main reason is that when they sold their homes in Sydney or Melbourne, they had enough money to buy a mansion in Bundaberg and even purchase a business.” John highlights the cost of living as the primary factor, stating, “All the time mate. As you age, it is harder to pay the rates and bills in Sydney. House poor. I moved to a little town and have never looked back. I have great memories but not of the traffic, lack of privacy, or airplane noise.”

Cost Comparison

The cost difference between living in Sydney and other Australian cities is significant. In Sydney, renting a 2-storey, 5-bedroom house with 3 bathrooms and multiple living spaces in the Campbelltown region is priced at $730 per week as of March 2023. On the other hand, a 4-bedroom house in Coffs Harbour with a granny flat and a pool on a 1000sqm block of land, albeit an older house lacking central air conditioning, rents for $920 per week. Both properties are within walking distance to the local mall and enjoy a quiet neighborhood. However, the cost of living in Sydney is much lower in other aspects.

According to a recent analysis, grocery items, fresh food, and meat in Sydney are generally 10 percent or more cheaper than in Coffs Harbour. Electricity rates are also cheaper in Sydney, with limited choice in suppliers in regional areas further increasing costs. Rates are roughly $1000 a year cheaper in Sydney, and driving is generally much closer for most needs in the city compared to the spread-out regional towns. Moreover, fuel in Sydney is around 10 to 15 cents a liter cheaper, and insurance for cars is also cheaper, with regional areas frequently experiencing high rates due to storms, cyclones, floods, hail, and theft.

Healthcare Considerations

Healthcare is a crucial aspect of living. John, who resides in Coffs Harbour, mentions, “Medical is a big part of life. I need specialists, and that meant frequent trips to Brisbane or Sydney, increasing the costs. In contrast, smaller travel distances within Sydney are much more convenient.” Sydney offers greater accessibility to specialists and medical professionals without the need for long travels.

Property values also reflect the cost differences between cities. In John's case, the Coffs Harbour house he owns is worth around $1.1 million currently, while a similar property in Sydney might sell for $800,000 to $1 million on a 400 to 500sqm block instead of the 1000sqm block in Coffs Harbour. However, the overall cost of living in Sydney, including the higher median house prices and the convenience of amenities, still outweighs the benefits of the cheaper cost of necessities.

Looking ahead, John plans to purchase property in the Philippines, noting that prices are significantly cheaper, although the lack of infrastructure poses challenges. However, he finds the cost savings to be substantial, at around 40 percent overall.

Conclusion

In conclusion, while Sydney remains a prime destination for its job opportunities and economic growth, the cost of living is a significant deterrent for many residents. The advantages of living in other Australian cities, particularly in terms of affordability, quality of life, and available amenities, cannot be ignored. As more Australians seek a balance between career goals and quality living, the exodus from Sydney continues, with many finding that other cities and regions offer a more balanced and financially sustainable lifestyle.