Australia’s country music capital has been identified as a property hotspot facing ‘double digit’ price growth in 2026, and there’s one big reason for it.
One of just seven locations to receive a double nomination by a panel of property experts in this year’s realestate.com.au Hot 100, Tamworth’s property market is already booming.
And according to buyer’s agents and selling agents alike, the regional city has a major supply problem.
Head of research at national buyer's agency Propertyology, Simon Pressley, said the city is facing its “lowest volume for more than 15 years,” with fewer than 200 homes currently listed on realestate.com.au in a city of more than 65,000 people across the broader region.
“Double-digit rates of house price growth are likely for 2026,” Mr Pressley said.
According to data using PropTrack’s automated valuation model, several pockets within the Tamworth region have already recorded red-hot 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 values in West Tamworth jumped 20% over the year to December 2025 to a median $498,000, followed by Oxley Vale (19%), Westdale (18%) and South Tamworth (17%).
Local real estate agent Jason Wherritt from McGrath Tamworth said homes priced in the $650,000-$750,000 price range were particularly sought after with investors and first-home buyers.
“Consistently for a period of time now there's been limited supply of properties available which is keeping prices in a positive situation,” Mr Wherritt said.
“There's still a very high demand of investors looking to purchase in the Tamworth area,” he said. “The rental values are still quite strong, and you're getting reasonably good [yields].”
Solid brick homes in Tamworth priced below $800,000, like 157 Brisbane Street, are in scarce supply. Picture: realestate.com.au
He said the recent interest rate hike was unlikely to spur on more listings.
“Typically investors are the first ones to offload when it comes to interest rate rises, but it doesn't relate to enough of a dollar increase in our market here [if rates] go up by a quarter or half a percent.”
Amy Hughes from PRD Tamworth said buyer activity was the strongest she’d seen in years, noting a lift in activity from buyer’s agents and first-home buyers accessing expanded government support.
“We’re a booming town, that's for sure. We have lots of great things here that do attract a lot of families to come to Tamworth,” she said.
“Buyer activity is still very strong. In particular, the first-home buyer and investment sectors, especially properties under that $800,000 mark.
“It really just comes down to supply and demand, and right now, demand is very high.”
East Tamworth is full of heritage homes that command a higher price point than other parts of Tamworth. Picture: realestate.com.au
The federal government recently raised the property price cap for eligible properties in its 5% Deposit Scheme to aid first-home buyers trying to crack into markets where property prices have increased.
First-home buyers purchasing a home in regional NSW through the scheme can now access homes prices up to $800,000.
For established homeowners looking to upgrade, Mr Wherritt said there was a key barrier keeping supply locked up.
“There's very limited supply for properties between that $750,000 and $900,000 mark, and the cost of purchasing a block of land now and building is still quite expensive.
“So I think they're looking at that and going, ‘that’s out of our league’ and then there's not that next step up.
“So the common scenario is people are just staying in their properties longer at this stage because they're feeling the affordability is just quite out of their reach to go to the next step up. There’s a bit of a jump.”
This four bedroom acreage on Tamworth's outer fringe has hit the market with a price guide of $680,000-$720,000. Picture: realestate.com.au
While the property gridlock is tipped to support price growth in the near term, experts say Tamworth’s diverse economy and family appeal also make it a long-term play for investors and families alike.
Historically centred on agriculture and livestock, the city underpins jobs in food processing plants, transport and logistics networks, and equipment manufacturing.
“Retail and health are its biggest employment sectors. And a suite of aviation services is a point of difference,” Mr 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 from Elders in the realestate.com.au Hot 100 for its “friendly, close-knit community, affordable housing, and a relaxed lifestyle.”
“With great schools, healthcare, and job opportunities, especially in agriculture, education, health, and retail, [as well as] strong transport links, Tamworth is appealing for families and professionals alike,” Ms Connor said.
Now in its fourth year, the Hot 100 is compiled by a panel of experts including leaders of national real estate agencies, buyer’s agents, researchers, investors and an academic, with additional data and analysis from PropTrack.
Suburbs are nominated based on the following growth drivers:
- Affordability, either low prices suiting buyers on a budget or relative affordability compared to nearby suburbs.
- Amenity, being the level of lifestyle pluses, from bars and restaurants to boutiques and parklands.
- Family appeal, such as dwelling type, perceived safety and proximity to good schools.
- Location, including proximity to the CBD or major hubs, or closeness to natural amenity like beaches.
- Investment prospects, from rental market conditions to expected imminent upside.
- Gentrification, being the changing face of a suburb.
- Population growth, representing a projected increase in the number of locals.
- Demographic change, indicating a shift from the current make-up of residents, for example young families replacing downsizing elderly locals.
- Infrastructure, looking at major investments in projects that will benefit the suburb or surrounds.
See the 2026 realestate.com.au Hot 100 here.
Buyer appeal across Tamworth
For buyers looking to get a freestanding home in Tamworth below $650,000, Mr Wherritt said South Tamworth offers a range of affordable older weatherboard and solid blonde brick homes – though competition is fierce.
“Hillview is still quite good,” he added.
North Tamworth is “always in high demand” with healthcare workers looking to be near the medical precinct, he said.
“Once we get into the higher price bracket, I would say there's more activity and more demand on that northern side of town out to Moore Creek, where it's just in a growth phase at the moment.
“You've got a new commercial precinct getting built out there with a supermarket, medical centre, retail shops and a tavern as well.”
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Meantime, families attracted to the city’s wide streets and federation architecture are drawn to the oldest part of the city – East Tamworth.
“Properties there don't turn over as much because they're more tightly held.”
More from the 2026 realestate.com.au Hot 100:
- The affordable suburbs primed for growth in 2026
- Australia’s hottest coastal suburbs to watch in 2026
- The booming property hotspots that are just getting started
- Australia’s investor hotspots for 2026
- Why these 7 suburbs could be the next big property hotspots
- Window of opportunity: Suburbs where prices could be about to rebound
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