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Australian suburbs face threat of ‘AI rust belt’ as automation impacts jobs – realestate.com.au

By Aidan Devine
Publication Date: 2025-12-12 18:30:00

Worker or engineer working with AI with graphic display in factory. Image: istock


Large parts of Australia are at risk of becoming an AI “rust belt” because of the large number of white-collar workers who could be displaced by automation, forcing many to leave the country and driving down property prices.

A comprehensive new analysis has identified several areas in major capital cities that have strong concentrations of workers in jobs that are expected to be quickly overtaken by AI within a few years.

The SuburbTrends report warns that these suburbs are at increased risk of job losses as automation sweeps into finance, insurance, telecommunications and professional services – sectors that dominate local employment in these areas.

Research group SuburbTrends predicts Sydney and Melbourne will bear the brunt of AI-related disruptions and local property markets could be disrupted.

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