The city's vacancy rates are at a record low representing a shift in the market that is likely due to interest rate cuts.
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The Real Estate Institute of NSW's September vacancy report showed the Riverina's vacancy rate was 1.2 per cent.
This meant that only 1.2 per cent of homes available for rent, across the region, had been left vacant.
However, Wagga's real estate agencies are showing the vacancy rates in the city are below one per cent.
Remax Elite director Dave Skow said the tightening of vacancy rates are good for landlords, but not ideal for renters.
"It's not such a good thing for tenants where it's demand heavy but short-term supply, because it becomes more competitive and can lead to higher prices," Mr Skow said.
"Our vacancy rate, within our office, is under one per cent which is out of the norm and we're typically hovering around the 1.5 to 2 per cent.
"We've probably attributed this to a couple of things and one is that investors are getting out of the investment market and are cashing in, many for their retirement."
Mr Skow said due to the interest rate cut, which is currently sitting at 0.75 per cent, many are choosing to sell their rental properties because it is "so cheap".
"Typically we see demand is at its peak in summer," he said. "There's the defence turnover, with people leaving to new postings across Australia and also new people coming to town.
"There's more activity in terms of leasing, but also more people are leaving."
Fitzpatricks director Shaun Lowry said there is about half the properties available for rent this year compared to last.
REINSW CEO Tim McKibbin said rates within the region are now at their lowest since the institute started collecting data in April 2016.
"With little variation in the amount of supply on the market, the decline in rental vacancies points to an increase in demand in the region," he said.
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"We do typically see vacancies decrease in the warmer months, so we can expect rates to remain low across NSW into the new year."
Unlike the Riverina, Sydney's vacancy rate hovering over 2.9 per cent. Mr McKibbin said this was largely due to the greater supply of rental properties on the market and therefore the capital city sees higher rental vacancies.
"This is due to more properties being made available than people looking to rent," he said.
