But it is Wodonga that has pulled most of the weight, recording 769 new residents in the 2012-13 financial year for a growth rate of 2.1 per cent, the city’s strongest result since 1993.

Four North East councils — Alpine, Towong, Indigo and Wangaratta — recorded a combined population decline of 81 residents.

There were 534 new residents in Albury, taking its population to 50,243, a growth rate of 1 per cent and the city’s best result since 2007.

Wodonga now has a population of 37,345 and its growth rate makes it the fastest growing regional city among competitors including Ballarat, Greater Bendigo and Greater Geelong.

With an estimated 1303 new residents in the 12 months to June 2013, the combined populations of Albury and Wodonga rose by 1.5 per cent, the largest rise since records were first kept in 1991.

The bureau’s Regional Population Growth Australia 2012-13 report showed the rise was only marginally under a similar growth rate in 2001.

Wodonga Council chief executive Patience Harrington said the growth was due to the city’s economic growth, business and development opportunities, infrastructure, services and amenities.

“People are obviously making a choice to live in Wodonga,” she said.

“We have had a significant amount of housing and development options, which apply to a diverse amount of people.”

Ms Harrington said the council had planned for expansions in Baranduda, Leneva and the central business area in the past two years that would support the next 20 years of growth.

“This leadership has made some really good decisions to support the population we have today but also to provide for future generations,” she said.

Albury mayor Kevin Mack said the result was a win for the twin cities.

“We clearly have a great region and we market it together as a great region,” he said.

“We’re doing it together.”

Mr Mack said Albury had a vision for the next 30 years to grow Thurgoona to cater for a projected extra 30,000 people, up from its present 10,000.

He said the cost of living and overcrowding in capital cities was encouraging people to make the move to Albury-Wodonga because of the great services and infrastructure.

Peter Bowen Homes sales manager Peter Brown said he’d noticed growth on both sides of the border during the past three years.

He said Victoria’s first homebuyers’ grant continued to drive growth in Wodonga, with benefits delayed by the availability of land.

Mr Brown, who is involved in an estate on Elizabeth Mitchell Drive in Thurgoona, said he’d seen interest swing to Albury in the past 12 months with changes to the NSW first homebuyers’ grant and the increased availability of quality land.

The developer of Wodonga’s Riverside Estate, Andrew Stern, said he’d seen a strong spike in sales after last year’s federal election.