NSW gains migrants from overseas while losing residents interstate
Overseas migration is driving NSW population growth, but the domestic migration flow is going the other way. NSW lost a net 20,818 residents to other states in the year to March 2026.
New South Wales has a striking population pattern: overseas migration is adding people while interstate migration is taking them away.
New ABS data show NSW gained 84,573 people through net overseas migration in the year to March 2026. At the same time, it recorded net interstate migration of −20,818 — by far the largest interstate population loss of any state or territory.
The contrast with Queensland and Western Australia is particularly revealing.
Queensland gained 14,718 people from interstate, alongside 55,217 from net overseas migration. Western Australia gained 10,314 interstate and 41,531 from overseas. Victoria was essentially balanced domestically, recording net interstate migration of just 82 people, while gaining 81,732 through overseas migration.
NSW is therefore unusual among the large states: international migration is supporting population growth while the domestic population flow is running strongly in the opposite direction.
Overall, NSW still grew. Natural increase added another 33,216 people, more than offsetting the interstate loss. But its annual population growth rate was only 1.1%, compared with 2.1% in Western Australia and 1.6% in both Queensland and Victoria.
The numbers do not tell us why people move interstate. Housing costs, employment, family, lifestyle and retirement can all influence migration decisions.
But interstate migration provides an interesting signal because Australians can choose between states without immigration restrictions.
The emerging question for NSW is therefore not whether people want to live there — strong overseas migration demonstrates continuing population demand.
It is why, once Australians are already here, more are moving out of NSW than moving in.