The Toowoomba property market has continued its upward trajectory in 2025, supported by tight supply, growing buyer demand, and the region’s strong appeal as a lifestyle and employment hub. As we close out the year, both homeowners and investors are looking for clarity on where the market may head in 2026 — and what early indicators suggest for the years beyond.

2025: A Year of Firm Growth and Strong Demand

The 2025 market delivered steady, broad-based growth across Toowoomba’s suburbs. Property values rose strongly, driven by limited housing stock, consistent population inflows, and buyers prioritising affordability and quality of life. Regional Queensland markets outperformed many of the capital cities again this year, and Toowoomba remained a standout for its mix of lifestyle advantages, infrastructure investment and relative affordability.

Key themes from 2025:

• Solid price growth across both houses and units, continuing the momentum from late 2024.

• Low levels of new listings, tightening competition and supporting premium results for well-presented homes.

• High owner-occupier demand, especially for family homes on larger blocks.

• Strong rental demand, with vacancy rates remaining low and rental yields increasingly attractive for investors.

• Growing interest in multi-generational living and acreage as lifestyle-driven buyers continued to migrate from metropolitan areas.

For sellers, conditions in 2025 generally favoured stronger negotiation power and shorter days on market. Buyers, meanwhile, continued to compete, particularly in high-demand pockets such as Rangeville, Highfields, Kearneys Spring and Meringandan West.

2026 Outlook: What the Indicators Suggest

Economic outlook commentary for 2026 points to cautious optimism. Australia is expected to move into a more stable period marked by moderate GDP growth, easing inflation, and potential improvement in household confidence. These national settings are important, as they flow through to borrowing costs, construction activity, and buyer sentiment.

What 2026 may bring for Toowoomba:

1. Continued but Moderating Price Growth

Forecasts suggest national home prices may rise again, but at a more sustainable pace compared with the strong gains of the past two years. Toowoomba is well-positioned to outperform the national average due to its tight supply and diverse local economy. Even modest interest-rate relief could add momentum to buyer demand.

2. Ongoing Supply Constraints

New housing supply is unlikely to meaningfully increase in 2026, given ongoing labour shortages, elevated construction costs and slow project pipelines. This will continue to support prices, particularly in the established housing market.

3. Strength in the Rental Market

Rental demand is expected to remain high, with limited new dwellings entering the market. Rental yields in Toowoomba may improve further, reinforcing the region’s appeal for both local and out-of-area investors.

4. Lifestyle and Regional Migration Trends

Toowoomba’s blend of affordability, education, health infrastructure and proximity to Brisbane will continue to attract both downsizers and young families. Population growth will remain a key pillar of demand.

Potential Risks Heading Into 2026

While the outlook leans positive, several factors warrant attention:

• A slowdown in the national economy, which could dampen buyer confidence.

• Delays in interest-rate cuts, keeping borrowing power constrained for longer.

• Construction sector volatility, potentially affecting supply and development confidence.

• Any material increase in new listings, which could rebalance conditions.

Overall, 2026 is shaping as a steady year rather than a volatile one — a welcome shift for buyers and sellers seeking more predictable conditions.

Looking Ahead: Toowoomba Property Market Scenarios for 2027–2028

To help homeowners, developers and investors plan ahead, here are three scenario-based forecasts that outline possible paths for the local market.

? Base Case Scenario (Most Likely)

Market pace: Moderate growth
Expected drivers: modest economic improvement, stable interest rates, ongoing housing shortage
What it looks like:

• Annual price growth in the range of 3–6%

• Strong demand for family homes, acreage and quality townhouses

• Rental market remains tight, with steady yield increases

• Continued buyer interest from Brisbane, southern states, and regional relocators

? Optimistic Growth Scenario

Market pace: Above-trend growth
Expected drivers: interest rate cuts, national economic acceleration, strong migration, construction shortages prolonging supply gaps
What it looks like:

• Annual price growth of 7–10%

• Increased demand from investors rediscovering regional markets

• More “multiple-offer” situations and premium prices for renovated and turnkey homes

• Land and acreage become particularly competitive

? Soft-Landing Scenario

Market pace: Flat to slight decline
Expected drivers: prolonged higher interest rates, a national economic slowdown, or a surge in new listings
What it looks like:

• Values remain stable or soften slightly (-1% to -3%)

• Days on market increase

• Buyers gain negotiation power, especially at higher price points

• Rental demand stays solid but rental growth slows

Final Thoughts

Toowoomba enters 2026 in a position of strength: a resilient regional economy, limited housing supply, strong rental fundamentals, and enduring appeal to lifestyle-focused buyers. While national conditions will influence the pace of growth, the local market’s depth and diversity continue to underpin both stability and opportunity.