A report by PRD Nationwide found that hotspots beyond the major capital markets were chosen for their affordability, property trends, investment, local job growth and a sustainable economic future. 

PRD Nationwide Wagga marketing manager Megan Lloyd said Wagga ticked four out of five criteria but did not make the cut due to the unemployment rate. 

"The unemployment rate as of the September 2018 quarter was 6.1 per cent, higher than the state average of 4.8 per cent," Ms Lloyd said. 

"That was the only reason why Wagga lots its place, which had nothing to do with the property market that is thriving. 

"Wagga is still affordable at a median house price of $360,000, with 5.9 per cent growth over the past 12 months and strong rental yields at 4.9 per cent." 

Ms Lloyd said with more than $327 million in project development planned for the city this year, there are "definite" indications for economic growth in the future. 

"This should lift up economic activity in the near future and have a positive effect on our unemployment rate," she said. 

"Overall, Wagga is still an awesome place, great bang for buck when compared to Sydney in terms of affordable investments that has solid rental prospects. 

"It's not unexpected for unemployment rates to fluctuate from quarter to quarter, due to seasonality and availability of jobs in that particular period."

The report showed that the five most affordable regional areas across the state all changed this year as opposed to 2018. 

Maitland, Dubbo, Port Macquarie and Yass have replaced 2018's regional hotspots, which included Tamworth, Goulburn, Orange and Wagga. 

LJ Hooker's principal agent Richard Rossiter said Wagga continues to be an affordable market that is "isolated" from the downturn witnessed by capital cities. 

"We're seeing good, steady and healthy growth in property prices," Mr Rossiter said. 

"I think the biggest influence in our market, in the short term, is the Federal election campaigning around the capital gains tax and negative gearing for investment properties. 

"This is seeing some procrastination on investors and decision making and could have a negative impact on the investment market which would see an increase in rental properties." 

Fitzpatricks Real Estate director Shaun Lowry said affordability is still in a "really good place" and the Bomen inter-modal hub could "dramatically" change things for the region.