Revealed: The ten regional hotspots beating their capital cities in housing

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 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.

he 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.

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.”

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.”