Why regional areas continue to be popular – John McGrath

Regional locations’ low property prices along with their strong infrastructure and amenities continue to ensure they’re a worthwhile prospect for sea and tree changers.

The latest Regional Movers Index found the number of people relocating from capital cities to rural Australia rose by 2.5% in the September 2025 quarter. The Sunshine Coast and Greater Geelong on Victoria’s scenic Surf Coast again attracted the largest net migration figures from capital cities to regional areas.

These areas, as well as larger rural locations such as Toowoomba in Queensland, and Moorabool in Victoria, can certainly hold their own against their urban counterparts. Mid-sized areas like these tend to have low unemployment rates and easy access to education, arts, and recreation services, and are more likely to attract and retain migrants – especially those who are young, university-educated and/or international migrants, according to a 2022 Australian Housing and Urban Research Institute (AHURI) report.

We explore regional areas’ continuing popularity and expansion, particularly in Tamworth in NSW, in our McGrath Report 2026. As I’ve previously discussed, this city is one of the many, similarly growing locations which offer buyers all the perks of urban-style living – arts, sports, education, healthcare, and shopping – wrapped up in a more relaxed and typically more affordable package.

Over the past decade, population growth has brought improved services to the Tamworth region, which has long been a central hub for surrounding towns and villages. Tamworth Regional Council figures show this location is now one of NSW’s largest inland cities with its population totalling 64,522 people and expected to reach 100,000 by 2041.

In addition, lifestyle buyers can find everything from modern homes on acreage to equine-focused properties or bush retreats, just 15 minutes from the CBD. But it’s Tamworth’s affordable property prices and rapidly growing values that hold the strongest appeal for city buyers.

Cotality’s first Home Value Index for 2026 showed that along with Gunnedah, one hour to the west, the rural city’s median dwelling value is now $547,841, after a 13.9% annual uplift. This is the third highest yearly growth of NSW’s SA3 rural regions. 

Tamworth also offers a wide range of employment opportunities equal to – and often better than – comparable city settings. This includes much easier commutes to work sites. According to Jason Wherritt, director of our McGrath Tamworth office, buyers are increasingly drawn to this city’s balance of rural tranquility and urban convenience.

“Tamworth delivers on both lifestyle and accessibility,” he said. “Many are surprised at how easily they can cross town compared to Sydney traffic, and the city’s proximity to the coast, Brisbane, Newcastle and Sydney (via multiple daily flights) only enhances its appeal.”

Jason added that the area is well positioned for continued growth, particularly in the northern corridor thanks to the newly launched Windmill Hill Town Centre, a new commercial and lifestyle development.

He said North Tamworth has already become the city’s medical precinct, with upgraded public and private hospitals and a leading regional cancer treatment centre.  

Tamworth’s biggest infrastructure project is the $1 billion Global Gateway Park, with construction on the 246ha industrial precinct beginning in 2020. The next stage of the $58.4 million upgrade and duplication of Goonoo Goonoo Road, a vital link of the New England Highway, which runs through Tamworth, is now being planned.

Education offerings include a variety of public and private schools, including boarding and agricultural colleges. The 2025-2026 NSW State Budget confirmed upgrades to Tamworth High School while a new public preschool will be delivered at Hillvue Public School.

Work on a $45 million indoor aquatic centre is expected to begin in the next few months at the Tamworth Sports and Entertainment Precinct, which already hosts a velodrome, equestrian arena, and athletics track. Expected for completion in mid-2027, the new Aquatic, Education and Health Centre of Excellence will feature a 50-metre indoor pool, a heated pool, spa and sauna, and a café.

The $18 million Tamworth Regional Skywalk is already well underway, with the 1.5km elevated walkway ending at the Oxley Scenic Lookout in Victoria Park to include viewing platforms and rest areas. The scenic project’s planned completion date is mid-2026.

With its rural location, well-established and increasingly expanding services, and a wide range of well-priced properties and employment possibilities, Tamworth is certainly a region to keep on your radar.