The ‘great city of the country’ has raised architectural development for one important reason

Australia’s country music capital has been identified as the leading property destination to experience ‘double digit’ price growth by 2026, and there’s one big reason for that.

One of seven areas to receive two nominations by a panel of property experts this year in the realestate.com.au Hot 100, Tamworth’s property market is already booming.

And according to buyer’s agents and seller’s agents alike, the city-state has a serious supply problem.

Head of research at national consumer organization Propertyology, Simon Pressley, said the city was experiencing the “lowest volume for more than 15 years,” with less than 200 homes currently listed on realestate.com.au in the city of more than 65,000 people across the region.

“A doubling of house price growth is likely by 2026,” Mr Pressley said.

According to data using PropTrack’s automated valuation model, several pockets in the Tamworth region have recorded the cheapest price growth over the past 12 months.

House prices in West Tamworth jumped 20% in the year to December 2025 to a median of $498,000, followed by Oxley Vale (19%), Westdale (18%) and South Tamworth (17%).

Local estate agent Jason Wherritt of McGrath Tamworth said homes in the $650,000-$750,000 range were in high demand from investors and first-time buyers.

“There has been a limited supply of properties for a long time which has kept prices in good shape,” said Mr Wherritt.

“There is still a lot of demand for investors who want to buy in the Tamworth area,” he said. “Rentals are still strong, and you’ve gotten a lot better [yields].”

He said the recent interest rate hike was unlikely to prompt more listings.

“Investors are usually the first to release when it comes to interest rate increases, but it has nothing to do with the increase in the dollar in our market here. [if rates] increased by a quarter or half a percent.”

Amy Hughes from PRD Tamworth said buyer activity was the strongest it had seen in years, noting the increase in activity from buyer’s agents and first home buyers receiving extended government support.

“We’re a thriving town, that’s for sure. We have a lot of good things here that attract more families to come to Tamworth,” he said.

“Consumer activity is still very strong. Mainly, 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 than other parts of Tamworth. Photo: realestate.com.au

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The federal government has recently increased the price of properties eligible for the 5% Deposit Scheme to help first home buyers trying to enter markets where property prices have risen.

First time home buyers in regional NSW through the program can now access house prices up to $800,000.

For older homeowners looking to upgrade, Mr Wherritt said there was a significant barrier to keeping the property closed.

“There is very little supply of properties between that $750,000 and $900,000 mark, and the cost of buying a piece of land now and building is still very expensive.

“So I think they look at that and go, ‘that’s not in our league anymore’ and there’s no next step.

“So the normal situation is that people just stay in their homes for a long time at this stage because they feel that they can’t afford their expenses and they won’t be able to go to the next step. There is a bit of a jump.”

This four bedroom acreage on the outskirts of Tamworth has come to the market with a price guide of $680,000-$720,000. Photo: realestate.com.au

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While property gridlock is said to be supporting 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 focused on agriculture and livestock, the city supports jobs in food processing areas, transportation and logistics networks, and machinery manufacturing.

“Retail and health are its biggest employment sectors. And the airline services chain is a point of difference,” Mr Pressley said.

“The already strong domestic economy has a project plan that includes infrastructure development, 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 relaxed lifestyle.”

“With excellent schools, health, and job opportunities, especially in agriculture, education, health and retail, [as well as] strong transport links, Tamworth appeals to families and professionals alike,” Ms Connor said.

Now in its fourth year, the Hot 100 is compiled by a panel of experts including national real estate industry leaders, buyer’s agents, researchers, investors and academics, with additional data and analysis from PropTrack.

Suburbs are designated based on the following:

• Accessibilitybe it low prices suitable for budget buyers or relative accessibility compared to nearby cities.
• Amenitywhich is a standard of living pluses, from bars and restaurants to boutiques and parks.
• Family appealsuch as type of residence, perceived safety and proximity to good schools.
• Locationincluding proximity to the CBD or major hubs, or proximity to natural resources such as beaches.
• Investment prospectsfrom the conditions of the rental market to the impending uprising.
• Gentrificationwhich is the changing face of the suburbs.
• Population growthindicating the expected increase in the local population.
• Demographic changewhich shows a shift in the current composition of the population, for example small families are replacing the elderly population of the area.
• Infrastructurelooking for major investments in projects that will benefit the suburb or surrounding areas.

Check out the 2026 realestate.com.au Hot 100 here.

Consumer complaints across Tamworth

For buyers looking to find a detached home in Tamworth for under $650,000, Mr Wherritt said South Tamworth offered a range of affordable old weatherboard and solid brown brick homes – although competition was fierce.

“Hillview is still really good,” he added.

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North Tamworth is “always in high demand” with health workers wanting to be close to a medical facility, he said.

“Once we get into the higher price bracket, I would say there’s a lot of activity and a lot of demand on that north side of town to Moore Creek, where it’s in the growth phase right now.

“You have a new commercial area being built over there with a supermarket, a medical center, shops and a tavern as well.”

Currently, families attracted by the city’s wide streets and corporate buildings are drawn to the older part of the city – East Tamworth.

“The buildings there don’t turn that much because they’re very stuck.”

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