Victoria's population is booming as NSW residents flood into their southern neighbour by the tens of thousands.

The latest figures from the Bureau of Statistics show the strongest population growth in Victoria since 1960, helped by a net migration of 5000 Australians moving to Victoria from other states in the first three months of 2017.

Of those, 2000 extra NSW residents moved permanently towards the Yarra, as rising costs of living, house prices and perceived job opportunities weighed on the minds of them and the 8000 that preceded them during the past year.

Victoria's 2.4 per cent population growth rate far outstrips its nearest competitors – the ACT at 1.8 per cent, and NSW at 1.6 per cent.