In the 2013-14 financial year, 353 homes were approved for construction, according to the latest Fitzpatricks Real Estate Report, released this week.

Estella Rise selling agent Neville Chapple has seen an overwhelming response to the development's land releases this year.

Its latest release, which began at the start of September, has seen more than half of the 67 lots available sold in just six weeks - the latest achievement in transforming an area that was just paddocks this time last year.

"Twelve months ago there were sheep running here," Mr Chapple said.

"I was trying to sell blocks and chase sheep away."

The appeal in building from scratch, Mr Chapple believes, lies largely in the freedom it provides for buyers, particularly in younger demographics.

"People have their own freedom of choice," he said.

"They can tailor to their needs and (fulfil) their dream of owning their own homes."

According to Fitzpatricks Real Estate director Richard Fitzpatrick, a combination of consistently low interest rates and pent up demand in the market have contributed to the rush to build new homes.

"There's a fair bit of pent up demand - there had been people wanting to source land and then land got freed up," he said.

"People were hanging out to build for a number of years and with the low interest rates felt the time couldn't be better."

Median house prices in Wagga decreased slightly over the past 12 months, to $310,000, but Mr Fitzpatrick believes they are likely to increase in the next year due to greater turnover in the market.

RENTAL prices in Wagga have risen by 13 per cent in the last year, according to new data released by Fitzpatricks Real Estate.

Median rents have risen uniformly for both two-bedroom units and three-bedroom houses in Wagga, to $250 per week and $340 per week respectively.

One factor which has led to the significant increase in rental prices has been the Riverina's low vacancy rate, which sat at just 3.3 per cent for the 2013-14 financial year.

That trend is set to continue for at least the next two years, according to Fitzpatricks Real Estate director Richard Fitzpatrick.

"Wagga in some ways is a bit like a mini-Canberra - it's got a lot of government money - in the likes of the big health centre, the university and the two military bases," he said.

"There's always a large need for those personnel to be housed."

Despite the trend of low vacancy rates being set to continue, Mr Fitzpatrick expects rent prices to flatten out in the coming months.

"Our prediction is it will consolidate and stay the same for the next 12 months," he said.

"That comes back to an affordability issue - if you and try and overreach, there will be pushback and people will stay put or look for cheaper forms of accommodation."

Unit sales in Wagga have also increased by 50 per cent over the past year, with a flood of new investors entering the market.