Three regional cities across Queensland are vastly outperforming Brisbane’s housing market, according to a new study on the nation’s rising hubs.
PRD’s Smart Moves: Regional Edition 2026 report found Toowoomba, Ipswich and Cairns offered more affordable homes by up to 25 per cent, offering a higher level of growth and investment for future homeowners.
The report found ten different towns across the country that offered better markets to their state’s capitals, beating them out in five key financial aspects.
The city of Cairns, along with Toowoomba and Ipswich, were found to be Queensland’s three best-performing regional hotspots, according to research by PRD.
PRD Chief Economist Dr Asti Mardiasmo said while the cities not ranked from one to ten, each met the criteria that made them the nation’s most promising markets.
“This report encourages people to look beyond the Metro area, to investigate what the regions can offer,” she said. “With higher affordability it also puts less pressure on monthly repayments, while building equity over time.”
“Each city is all grown up in a way, in terms of their services and commercial offers, yet they are still more affordable than [their capital]. This is where the new opportunities are.”
PRD Chief Economist Dr Asti Mardiasmo said the report was designed to show off areas outperforming the nation’s capitals, giving new opportunities for home buyers.
Brisbane’s spiking housing market meant areas outside of the city are receiving more attention by investors and people seeking their first home.
The ten cities were judged by five sets of criteria: affordability, property growth, investment opportunity, project development and allow unemployment rate.
Brisbane in particular saw the biggest house price growth across all capitals in the December 2025 quarter (13.3 per cent); giving Queensland’s regional markets a chance to show their worth.
Toowoomba has seen a population growth of 7 per cent in the past 5 years, with more than 11,000 people migrating to its streets.
Toowoomba’s growing status as an accessible and growing hub has reflected in its strong job market amid a rising population. Picture: Statik Illusions
The report found this helped foster a strong job market and spiking house sales higher than pre-Covid numbers, with low vacancy rates in the rental market.
“It’s now becoming more of an entertainment hub,” Dr Mardiasmo said. “It’s not quite the same as Brisbane, but you can definitely get everything you need in Toowoomba.”
Ipswich’s location within Greater Brisbane has made it the more affordable region with easy access to the city and its amenities.
Ipswich has the benefit of proximity to the city and its status as an Olympics area, with Cairns growing in its industrial sector. Picture: Rob Williams
The city has seen a growth in house price by 141.3 per cent over the past ten years, but Dr Mardiasmo said it was still offering more accessible homes for first homebuyers.
“It is also what we call an Olympics area for 2032,” she said, which she said enhanced the area’s growth prospects over the coming years.
“The fact that it still provides that affordability right now means that it creates the opportunity for people to go to a place close to Brisbane City, but still on a more affordable scale.”
Regional hotspots such as Bendigo are among the locations outside of Queensland doing well. NSW and Victoria each took three spots on the top 10 list, with Tasmania taking one.
Despite a population growth of 5.1 per cent over five years, Cairns’ unemployment rate has remained stable at 4.4 per cent over the past 12 months.
Meanwhile, the area is expected to see $3.5 billion worth of developments commence in 2026, indicating a growing city with high investment potential.
“In Cairns there’s about to be a lot more growth and stock going into the area, which really gives you that housing diversity,” Dr Mardiasmo said. “Tourism is still a main attraction for Cairns, but now it’s turning into a more commercial location.”
A preview of other high-performing regional Queensland areas, as seen in the PRD Smart Moves: Regional Edition 2026 report.
Seven other Queensland cities were found to have met four of the five criteria on PRD’s list. These include Gladstone, Gympie, Townsville, Fraser Coast, Mackay, Bundaberg and Livingstone, each offering investment potential outside of the central Brisbane market.
Nationally, three regional suburbs were found across both New South Wales and Victoria, with the Tasmanian city of Launceston also making the top ten list.
New South Wales was found to have the greatest regional potential in the Central Coast area, the Mid-Coast area and Shoalhaven, while Victoria saw high outcomes for Bendigo, Geelong and Casey.
”On a national scale, if we go back to Covid times, it’s regional markets that have held quite stable and resilient.”
“Nationally we do have a lot of investors and first homebuyers going ‘we’re not sure what’s going to happen, now that interest rates are predicted to go up’,” Dr Mardiasmo said.
“On a national scale, if we go back to Covid times, it’s regional markets that have held quite stable and resilient.
“They have sort of their own local economy … it’s a little more insulated than say Sydney, Brisbane, Melbourne.”
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