Growing pains and gains as regional boom continues

While the Geelong Cats are fifth on the AFL ladder, their home city is the reigning champion.

The Victorian region has become the most popular place for capital city escapees to settle, with its picturesque coastline and thriving industry making it an ideal sea-change destination.

Greater Geelong has overtaken Queensland's Sunshine Coast as the top region to welcome new residents from the capital cities, followed by Lake Macquarie, NSW; Moorabool, Victoria; and Maitland, NSW.

The Regional Movers Index, a quarterly report compiled by the Regional Australia Institute using Commonwealth Bank data, also shows most tree-changers are coming from Sydney and Melbourne.

The rate of people moving to Australia's regions increased by more than 10 per cent in the March quarter, according to the index released on Wednesday.

The shift to country life, which accelerated during COVID-19 lockdowns, would only persist as the regions attracted more attention and potential investment, Commonwealth Bank executive Josh Foster said.

"They're idyllic locations to move, whether people want the tree change or the sea change," Mr Foster told AAP.

"I certainly don't see it going back."

Greater Geelong is Australia's largest regional council area, home to more than 282,000 people.

While the region has a bright future, it is experiencing significant growing pains, according to the council's draft five-year plan.

Like most regional areas, Greater Geelong is confronting a housing shortage, ageing infrastructure and congestion as it expands.

"Greater Geelong is one of Australia's fastest-growing regions, and managing this expansion will be crucial to our success over the coming decades," the plan said.

Maitland, in the NSW Hunter Valley, is also experiencing rapid growth, attracting new residents from both the capitals and other regions.

It was the most popular new home for people moving from other regional areas in the year to March, followed by Greater Geelong and Queensland's Sunshine Coast, Gympie and Fraser Coast.

Maitland, which had a population of 78,000 in 2016, is on track to exceed 100,000 people by the end of 2026, with six new residents arriving every day, according to a council report.

The nation's regional population sat at 9.91 million and was set to increase, institute chief executive Liz Ritchie said.

"There are big economic gains to be made by supporting, facilitating and nurturing growth across the regions," Ms Ritchie said.

"Those benefits can only be achieved ... by ensuring communities have the infrastructure, facilities, funding and support they need to continue to welcome all those who are actively choosing a regional life."