Regional New South Wales | Spring 2026 Residential Report

Regional NSW's property market enters Spring 2026 with solid momentum, supported by stronger sales activity, rising property values and ongoing rental undersupply. Homes are selling faster than they were a year ago, residential prices continue to grow and unemployment remains low, helping to underpin market confidence across many regional centres.

Market snapshot
Regional NSW recorded 66,097 residential property sales in the year to Q2 2026, representing annual growth of 9% and exceeding the five-year average. Homes are taking an average of 50 days to sell, 11 days faster than a year ago, reflecting healthy buyer demand across the region. While new listings declined 5.3% year-on-year, total listings remain 5.4% higher than a year ago, providing buyers with a broader range of opportunities.

Property prices
Regional NSW residential property values increased 6.7% over the year to Q2 2026, taking the average residential property value to $869,400. Prices continued to strengthen during the most recent quarter, rising 0.8%. Looking ahead, McGrath Research forecasts Regional NSW residential property prices will increase by 4% by the end of 2026, followed by a further 2% rise in 2027 as demand continues to be supported by lifestyle appeal, relative affordability and constrained housing supply.

Rental market
Rental conditions remain undersupplied across Regional NSW, with vacancy rates recorded at just 2.0% at the end of Q2 2026, below the level generally considered a balanced market. Average weekly rents increased 7.5% over the past year to $645 per week, driven by limited rental stock and continued tenant demand. McGrath Research forecasts rents will rise by a further 5% by the end of 2026 and 6% in 2027.

Economic drivers
Regional NSW continues to benefit from low unemployment, population growth and ongoing housing demand. Population growth reached 0.9% in 2025, while unemployment remained low at 3.3%, well below the national average. Housing supply remains constrained, with new dwelling completions across NSW tracking 1.5% below year-ago levels despite a 6.0% increase in building approvals. These factors continue to support both property values and rental growth across the region.

Outlook for Regional NSW property
Regional NSW is expected to remain one of Australia's strongest-performing regional housing markets through the remainder of 2026. McGrath Research forecasts further growth in residential property values, supported by favourable lifestyle migration trends, low unemployment and ongoing housing supply constraints. Tight rental conditions are also expected to persist, supporting continued rental growth and investor demand across many regional centres.
Explore the full Spring report for detailed insights into sales activity, housing supply, property values and rental market performance across Regional NSW.