Why More Sydney Families Are Relocating to the Illawarra

Over the past decade — and accelerating since 2020 — the Illawarra has become one of the most popular relocation destinations for Sydney families.

Once considered "commutable coastal living", the region is now recognised as a self-sustaining lifestyle hub with its own employment, education, health and recreational infrastructure.

With rising affordability pressures in Sydney, more families are looking south for space, stability and a lifestyle that supports both work and wellbeing.

In response, the Illawarra's northern, central and southern suburbs have seen consistent demand from professionals, hybrid workers, upgraders and young families seeking a different rhythm.

Here's a data-backed breakdown of why this shift is happening — and why it's likely to continue.

Affordability, Space and Long-Term Value

1. Better Value for Family Homes

For many Sydney families, the price gap between metropolitan suburbs and coastal Illawarra has become impossible to ignore.

While northern Sydney or inner-west three-bedroom homes can easily exceed $1.7–$2.2 million, comparable homes in the Illawarra often sit far below that level, with more land, better lifestyle and stronger long-term appeal.

Suburbs such as:

• Woonona

• Corrimal

• Bulli

• Albion Park

• Flinders

• Kiama Downs

The Illawarra offers significantly more affordable pricing while still delivering strong capital growth.

This affordability gap creates a powerful pull for families seeking to secure their "forever home" without compromising their lifestyle or budget.

2. Access to Larger Blocks and Family-Friendly Layouts

Sydney's density means many families face tight living conditions — small backyards, narrow blocks or multi-level compromises.

In contrast, the Illawarra offers:

• wider frontages

• larger backyards

• quieter streets

• family-friendly layouts

• space for pets, gardens and play areas

The appeal of more room, indoors and out, is a major driver of relocation.

3. Good Long-Term Capital Growth Indicators

The Illawarra continues to show strong performance over time due to:

• limited coastal supply

• strong owner-occupier demand

• consistent population inflows from Sydney

• Ongoing infrastructure investment

• tightly held seaside pockets

Northern suburbs such as Bulli and Thirroul have shown some of the region's strongest long-term growth. At the same time, Shell Cove and Kiama have shown robust, sustained demand supported by lifestyle appeal.

For families seeking both lifestyle and asset performance, it's a compelling combination.

Lifestyle Upgrade: Beaches, Cafés, Schools and Community

1. The Coastal Lifestyle Sydney Families Can't Access

Many Sydney families love the idea of "living near the beach" — but few suburbs make this practical without high cost.

The Illawarra offers:

• white-sand beaches

• patrolled surf clubs

• coastal cycleways

• dog-friendly zones

• rock pools

• calm lifestyle rhythms

Areas like Austinmer, Thirroul, Woonona, Bulli and Kiama feel like weekend destinations — but with weekday practicality.

Families relocating from the Inner West, Hills District or Western Sydney often cite "Access to the beach on weekdays" as one of their biggest motivations.

2. Modern Schools and Education Options

Schooling is a significant factor in family relocations.

The Illawarra offers:

• respected public schools (Woonona High, Figtree High, Kiama High)

• strong primary schools across the north and south

• private school options in Wollongong

• highly regarded early learning centres

• proximity to the University of Wollongong

Parents value the combination of strong academic environments and outdoor lifestyle opportunities.

3. A More Balanced Lifestyle

The Illawarra's lifestyle advantage extends beyond the coastline.

Families relocating from Sydney often reference:

• reduced commute times (hybrid work models)

• more time together

• calmer neighbourhoods

• access to cafés, sporting clubs, parks and community events

• proximity to Wollongong CBD's growing amenities

Thirroul Village, Kiama's town centre, Shellharbour Marina and Wollongong's CBD have all matured into highly liveable precincts.

The Rise of Hybrid Work and Flexible Commuting

Hybrid work has changed the map of what's possible for Sydney families.

Instead of commuting five days a week, many now travel to Sydney 1–3 days a week, making the Illawarra completely viable.

1. Improved Transport Connections

Key advantages include:

• rail access from Thirroul, Austinmer, Woonona and Wollongong

• road upgrades on Memorial Drive and Princes Highway

• future transport planning to support long-term travel needs

This flexibility has unlocked the region for professionals from:

• finance

• consulting

• tech

• health

• public service

• education

Families appreciate being able to work in Sydney when needed but return home to a calmer, coastal environment.

2. Growth in Local Employment

The Illawarra is no longer solely a commuter region. Local employment is expanding in:

• health and medical care

• higher education

• engineering and advanced manufacturing

• tourism and hospitality

• government and professional services

• port and logistics operations

With more local job opportunities, fewer families rely on daily commuting — further strengthening demand for northern and coastal suburbs.

3. Strong Demand from Sydney Ex-Pats Creates Competition

This growing interest from Sydney has shifted buyer behaviour locally:

• More competition for renovated homes

• increased demand for family-friendly coastal pockets

• stronger bidding at auctions

• greater interest in off-market opportunities

This is especially visible in Thirroul, Woonona, Kiama and Shell Cove, where Sydney buyers often target lifestyle streets close to beaches, schools and transport.

Why This Trend Will Continue

Sydney affordability pressures, hybrid work patterns and lifestyle priorities point to ongoing demand for the Illawarra.

Families want:

• Access

• community feel

• modern amenities

• strong schools

• larger homes

• lower density

• long-term value

The Illawarra's mix of coastline, infrastructure, affordability and opportunity positions it as one of NSW's most attractive relocation destinations for the next decade.

Thinking About Relocating to the Illawarra?

Whether you're comparing suburbs, exploring schools, or navigating the difference between on-market and off-market homes, having a clear strategy helps you move confidently.

At The Shoreline Agency, we help Sydney families:

• Choose the right Illawarra suburb

• Compare lifestyle pockets

• access off-market homes

• assess long-term value

• negotiate with clarity and confidence

📞 Book your free 15-minute strategy call to explore your move south — with local guidance every step of the way.

👉 joel@theshorelineagency.com.au

See you on the Shoreline.