Australia’s country music capital has been identified as a property hotspot set to see ‘double-digit’ price growth by 2026, and there’s one big reason for that.
As one of only seven locations to receive a double nomination from a panel of property experts in this year’s realestate.com.au Hot 100, Tamworth’s property market is already booming.
And according to both buyer and seller agents, the regional city has a major supply problem.
Simon Pressley, head of research at national buying agency Propertyology, said the city is experiencing the “lowest volume in more than 15 years”, with fewer than 200 homes currently listed on realestate.com.au in a city of more than 65,000 in the wider region.
“Housing prices are likely to rise by double digits by 2026,” Pressley said.
According to data using PropTrack’s automated valuation model, several sectors within the Tamworth region have already recorded huge price growth over the past 12 months.
| Suburb | Median house price (Dec 2025) | Quarterly growth | Annual growth |
| West Tamworth | $498,000 | 9% | 20% |
| Oxley Vale | $585,000 | 6% | 19% |
| Westdale | $591,000 | 8% | 18% |
| South Tamworth | $503,000 | 5% | 17% |
| Kootingal | $564,000 | 10% | 16% |
| Calala | $730,000 | 4% | 14% |
| Hillvue | $689,000 | 5% | 14% |
| East Tamworth | $747,000 | 4% | 14% |
| North Tamworth | $713,000 | 6% | 14% |
| Moore Creek | $1,078,000 | 9% | 11% |
House prices in West Tamworth increased by 20% over the year to December 2025 to an average of $498,000, followed by Oxley Vale (19%), Westdale (18%) and South Tamworth (17%).
Local estate agent Jason Wherritt of McGrath Tamworth said homes priced in the $650,000-$750,000 price range were particularly sought after by investors and first home buyers.
“For some time now there has been a consistently limited supply of property available, keeping prices in a positive position,” Mr Wherritt said.
“There is still very strong demand from investors looking to buy in the Tamworth area,” he said. “The rental values are still quite strong and you are doing quite well [yields].”
He said the recent rate hike is unlikely to lead to more listings.
“Normally, investors are the first to cancel their debt when it comes to interest rate increases, but this does not have to do with a sufficient appreciation of the dollar in our market here. [if rates] increase by a quarter to half a percent.”
Amy Hughes from PRD Tamworth said buyer activity was the strongest she had seen in years, noting an increase in activity from buyer agents and first home buyers accessing extended government support.
“We’re a thriving town, that’s for sure. We have a lot of great things here that attract a lot of families to come to Tamworth,” she said.
“Buyer activity is still very strong, particularly in the first home and investment buyer sectors, especially in properties under the $800,000 mark.
“It really just comes down to supply and demand, and right now demand is very high.”
![](data:image/svg+xml,%3Csvg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 800 450"%3E%3C/svg%3E)
East Tamworth is full of historic houses that command a higher price than other parts of Tamworth. Image: realestate.com.au
The Federal Government recently increased the property price limit for eligible properties in its 5% Deposit Scheme to help first home buyers trying to enter markets where property prices have risen.
First home buyers who purchase a home in regional NSW through the scheme can now access house prices up to $800,000.
For established homeowners looking to upgrade, Mr Wherritt said there was a key barrier keeping supply locked.
“There is a very limited supply of properties in the $750,000 to $900,000 range, and the cost of buying a piece of land now and building it is still quite expensive.
“So I think they look at that and say, ‘that’s out of our league’ and then there’s no next step.
“So the usual scenario is that people are simply staying in their properties longer at this stage because they feel that the affordability is simply out of their reach to move to the next step up. There is a small jump.”
This four-bedroom plot on the outskirts of Tamworth has hit the market with a price guide of $680,000-$720,000. Image: realestate.com.au
While the impasse in the property sector is likely to support price growth in the short term, experts say Tamworth’s diverse economy and appeal to families also make it a long-term strategy for investors and families alike.
The city has traditionally been centered on agriculture and ranching, supporting jobs in food processing plants, transportation and logistics networks, and equipment manufacturing.
“Retail and healthcare are the largest employment sectors. And a range of airline services is a point of difference,” Pressley said.
“The already strong local economy has a project pipeline that includes freight logistics upgrades, renewable energy and education.”
The region was also nominated by Belinda Connor of Elders in the realestate.com.au Hot 100 for its “friendly, close-knit community, affordable housing and relaxed lifestyle.”
“With great schools, healthcare and employment, especially in agriculture, education, healthcare and retail, [as well as] Strong transport links make Tamworth attractive to both families and professionals,” said Ms Connor.
Now in its fourth year, the Hot 100 is compiled by a panel of experts including national real estate agency leaders, buyer’s agents, researchers, investors and an academic, with additional data and analysis from PropTrack.
Suburbs are nominated based on the following growth drivers:
- Affordabilityeither low prices suitable for buyers on a budget, or relative affordability compared to nearby suburbs.
- Facilitiesbeing the level of lifestyle pluses, from bars and restaurants to boutiques and parks.
- Family callsuch as housing type, perceived safety and proximity to good schools.
- Locationincluding proximity to the CBD or major interchanges, or proximity to natural amenities such as beaches.
- Investment prospectsfrom rental market conditions to expected upside potential.
- Gentrificationthe changing face of suburbia.
- Population growthrepresenting an expected increase in the number of local residents.
- Demographic changeindicating a shift from the current composition of residents, for example young families replacing the shrinking older local population.
- Infrastructurewhich looks at large investments in projects that benefit the suburb or surrounding area.
View the Realestate.com.au Hot 100 of 2026 here.
Attraction for buyers in Tamworth
For buyers looking for a detached house in Tamworth under $650,000, Mr Wherritt says South Tamworth offers a range of affordable older timber and solid blonde brick homes, although competition is fierce.
“Hillview is still pretty good,” he added.
North Tamworth is always in high demand, with healthcare workers wanting to be near the medical precinct, he said.
“Once we get into the higher price range, I would say there is more activity and more demand on the north side of the city, all the way up to Moore Creek, where the city is just in a growth phase right now.
“A new commercial district is being built there with a supermarket, a medical center, shops and a tavern.”
Get your realEstimate™
Track the value of your property and unlock insights and data tailored to property owners.
Meanwhile, families drawn to the city’s wide streets and federation architecture are drawn to the oldest part of the city: East Tamworth.
“Properties there don’t change that much because they are more firmly controlled.”
More from realestate.com.au’s 2026 Hot 100:
#big #country #town #real #estate #boom #big #reason #realestate.com.au