Melbourne named 7th most unaffordable city: What this means for Regional Victoria

This ranking merely confirms what Melburnians and regional Victorians have been feeling for years: the state’s cost-of-living crisis is real, and it’s driving a greater number of people to reconsider where they’re living.

So what does it mean for regional Victoria?

The ripple effect is huge. With the prospect of Melbourne feeling like a far-off world for many, country towns across the state are booming — and with it, bringing both challenges and opportunities.

Let’s break it down.

1. The Regional Boom: Regional Housing Prices Are Rising Too

As Melbourne property prices push homeownership further out of reach, many are seeking a new life in regional Victoria.

For regional dwellers, as more people flee Melbourne’s property nightmare, demand in regional towns is skyrocketing as a result.

Whether this has affected the cost of living or your rent or property purchasing power, planning finances properly is crucial at times of crossroads like this.

That’s where companies like Best Financial Planners come in. Finding a well-established financial planner Melbourne residents have trusted throughout the crisis, means you’ll have an experienced set of eyes to help guide you through the financial issues that are slowly spreading across the state.

From budgeting to understanding investment opportunities in regional areas, seeking expert advice can make all the difference.

City dwellers seeking a cheaper lifestyle while still remaining connected to Melbourne are flocking to places such as Ballarat, Bendigo, Geelong and up here in Echuca Moama.

But this change isn’t purely about affordable homes — it’s about quality of life.

Less congestion, a sense of community and the possibility of owning a backyard are huge draws.

Five years ago, you could have bought a home in Geelong or Ballarat for a fraction of the cost compared to the city, but today?

Prices are climbing fast. While some things remain cheaper than Melbourne, regional hotspots are not immune to the supply-and-demand game.

Locals who’ve long called these towns home are now vying with cashed-up Melbournians, and in some cases, they’re being priced out.

2. Infrastructure Struggles to Keep Up

With more people moving to regional areas, local infrastructure is feeling the strain.

Public transportation, healthcare facilities and schools are now under pressure as populations grow at a pace that many towns weren’t ready for.

Unfortunately, it takes time for governments to invest in upgrades to this infrastructure.

As a silver lining, with the growing population comes the demand for better infrastructure.

As a result, more government funding is being allocated to improve transport links, with plans to expand train services and road networks.

However, all of this will take time. For now, lots of regional commuters have to deal with long travel times if they’re working in Melbourne.

3. Job Market Shifts and Remote Work

The rise of remote work has changed the game and work from home is here to stay, allowing more people to ditch the city without sacrificing their career prospects.

Employers have grown more flexible while understanding the unaffordability of Melbourne, making it a lot easier for workers to establish home offices in the countryside.

This change is one of the main reasons Melbourne’s unaffordability isn’t as great a barrier as it once was — because, now, living in a regional town doesn’t automatically mean you have to sacrifice a city salary.

From a local perspective, this enables greater work opportunities for the Echuca-Moama region.

A decade ago, we were cut off from all Melbourne employment opportunities because residents could not be there in person.

Now, this shift gives more Echuca-Moama locals a chance to apply and secure more jobs across the state with a remote work style.

That said, not all sectors have adopted remote work, and workers in some industries are still geographically limited in their job opportunities.

4. A Culture & Social Change

Finally, despite the challenges of an influx of Melbourne residents moving to regional Victoria, it comes with undeniable perks.

Communities get the chance to thrive with more people to fill the gaps and bring new ideas, businesses and jobs to local areas.

There is also more money being directly injected into local businesses and communities.

As mentioned, there is more desire for infrastructure and facility upgrades with the growing regional population, benefiting everyone in the area.

This comes with the potential for a greater cost of living and a gradual increase in property prices.

The latter may be a perk for property owners, but it’s undoubtedly met with dread for renters of those wishing to enter the property market soon.

However, as the shift is one of growth in the local economy and culture, it's important not to label it with ideas of good and bad, but to learn how to adjust and put yourself in the best position to use it in your favour.

The Bottom Line: Should You Stay or Should You Go?

Melbourne’s unaffordability has turned regional Victoria into an attractive alternative — and that is a complex shift for local communities and towns.

There are pros and cons to weigh up, like an increase in rent and cost of living prices but a boost in jobs and the local economies.

Whether you’re worried your budget won’t make it through any more inflation hikes, are worried about being priced out of rentals or are looking to purchase a home, seeking the right financial advice can help you navigate the transition better.

The reality is that Melbourne’s housing crisis is likely here to stay, and regional Victoria will continue to feel the effects.

One day, perhaps, Melbourne will shed its “unaffordable” title — but for now, regional Victoria is set to adjust to meet the needs of a growing population.