Millions of baby boomers will be a driving force of Australia's property market over the next 20 years and many will head to the affordability of regional Australia, according to new research which identified 40 regional locations likely to be targeted by baby boomers, because their poor retirement savings and superannuation balances means that housing affordability will be a major priority.

Baby boomers didn't have their employer contributing towards superannuation until the back end of their working years. So, one way or another, around 90 per cent of this generation will have some reliance on a government-funded pension.

Don’t be surprised if tens, and possibly hundreds, of thousands end up organising a removal truck and relocating to one of the many beautiful parts of regional Australia in search of a sea- or tree-change.

The huge influx of baby boomers is likely to have a significant impact on regional property markets. The potential for a mass baby boomer migration over the next two decades means regional property investment remains a sound strategy.

When Australia’s baby boomer population equates to 4.45 million people, even if only a small portion did relocate, it will create significant extra demand for housing in the regions.

This very real scenario is one of several reasons why Propertyology has always maintained an open mind to taking advantage of property investment opportunities in parts of regional Australia.

Whether coastal or rural, we believe that the regional cities that will be in highest demand by baby-boomer re-locators will offer a combination of quality lifestyle, good health care, and availability of freestanding houses for less than $400,000.

Propertyology identified 40 regional locations that are likely to be in strong demand from baby boomers. These include:

- Coffs Harbour, Port Macquarie, Armidale, Orange, Tamworth, Dubbo and Wagga Wagga in NSW.

- Cairns, Townsville, Hervey Bay and Toowoomba in Qld.

- Hobart, Launceston, Devonport and Burnie in Tasmania.

· - Albany, Bunbury and Geraldton in WA.

· - Port Lincoln in SA.

· - Bendigo and Ballarat in Victoria.

· - Alice Springs and Katherine in the NT.

It makes sense for property investors to consider regional Australia because of the number of strong fundamentals in play. The advantages of investing in regional Australia include a smaller capital outlay to get in to the market, higher rental yields, lower holding costs, and diversification within a portfolio.

When analysed on an average annual capital growth rate over the past 15 years, many regional cities have actually outperformed capital cities. And, with industries like agriculture, tourism, and advanced manufacturing very well-positioned to prosper from the Asian Century, it shouldn’t be difficult at all to understand that the investment fundamentals are very sound.