Tourism is a double-edged sword for many regions. It brings economic vitality, cultural exchange, and global attention, but it also reshapes local markets—particularly real estate. In Orange, New South Wales, a picturesque city roughly 250 kilometers west of Sydney, tourism has become a significant driver of economic activity. Known for its cool-climate wines, vibrant food scene, and stunning natural beauty, Orange has evolved from a quiet agricultural hub into a bustling destination for weekenders, retirees, and investors alike. But how exactly does this influx of visitors affect property prices in Orange? Let’s dive into the dynamics at play.
The Tourism Boom in Orange
Orange has seen a steady rise in tourism over the past decade. With its rolling vineyards, boutique wineries, and a reputation as a foodie haven, the city attracts a mix of domestic travelers from Sydney and Canberra, as well as international visitors exploring beyond Australia’s coastal icons. Events like the Orange FOOD Week and the Orange Wine Festival draw thousands annually, while the region’s proximity to Mount Canobolas and its seasonal charm—think autumn leaves and crisp winters—add to its allure.
This tourism surge isn’t just a seasonal blip. According to local tourism data, visitor numbers have climbed consistently, with overnight stays increasing as people linger to explore the region’s offerings. In 2023 alone, Orange welcomed over 700,000 visitors, a figure that’s grown by roughly 5% year-on-year since 2015. This sustained interest has ripple effects, and one of the most tangible is its impact on the property market.
Demand for Short-Term Rentals
One of the most direct ways tourism influences Orange’s property prices is through the rise of short-term rentals (STRs). Platforms like Airbnb and Stayz have transformed how visitors experience Orange, offering cozy cottages, vineyard-adjacent homes, and chic apartments as alternatives to traditional hotels. For property owners, this is a lucrative opportunity. A well-located three-bedroom home in Orange can fetch $200–$300 per night during peak seasons, far outpacing the $400–$500 weekly rent it might command in the long-term rental market.
This shift has tightened the supply of available homes for permanent residents. Investors, spotting the potential for higher returns, are snapping up properties to convert into STRs. A 2022 report from the Orange City Council noted a 30% increase in registered short-term rental listings over five years, with many of these properties previously available for long-term lease or sale. As supply dwindles, basic economics kicks in: reduced availability drives up prices. Median house prices in Orange have climbed from $430,000 in 2018 to over $700,000 by early 2025, a jump that outpaces inflation and regional wage growth.
The Appeal to Lifestyle Buyers
Tourism doesn’t just bring overnight guests—it also attracts a wave of “lifestyle buyers.” These are often city dwellers, retirees, or remote workers who visit Orange, fall in love with its charm, and decide to relocate or buy a second home. The city’s tourism marketing—highlighting its laid-back vibe, farm-to-table dining, and scenic beauty—doubles as a siren call for these buyers. Sydney-siders, in particular, see Orange as an affordable escape, just a three-hour drive from the metropolitan hustle.
This influx has fueled demand for premium properties. Homes with views of Mount Canobolas, heritage-listed cottages, or plots near vineyards command top dollar, often selling above asking price in competitive bidding wars. Real estate agents report that properties marketed with tourism-friendly features—like proximity to wineries or event hubs—see faster sales and higher premiums. For example, a four-bedroom home near Lake Canobolas sold for $950,000 in late 2024, a 20% increase from its valuation two years prior, driven by out-of-town buyers seeking a holiday retreat.
Infrastructure and Economic Growth
Tourism also indirectly boosts property values through infrastructure investment. As visitor numbers grow, so does the need for better roads, public spaces, and amenities. The Orange City Council has responded with projects like the redevelopment of the CBD, improved pedestrian precincts, and enhanced public transport links to nearby towns. These upgrades make Orange more livable and attractive, not just for tourists but for residents and investors too.
Commercial property prices have risen in tandem. Cafés, boutique shops, and cellar doors catering to tourists have increased demand for retail spaces, pushing up rents and sale prices in the city center. A small commercial lot that sold for $300,000 in 2017 might now fetch $500,000, reflecting Orange’s growing status as a regional hub. Residential properties benefit from this halo effect—neighborhoods near thriving commercial zones become more desirable, lifting home values across the board.
The Downside: Affordability Pressures
While rising property prices are a boon for homeowners and investors, they pose challenges for Orange’s long-term residents, particularly younger families and lower-income workers. The median household income in Orange hovers around $80,000, yet the median house price now exceeds eight times that figure. For comparison, Sydney’s price-to-income ratio sits at around 12, but Orange’s rapid escalation has locals worried about being priced out of their own city.
The tourism-driven STR boom exacerbates this. With fewer homes available for long-term rent, rental vacancy rates have dropped below 1%, and weekly rents have spiked—up 25% since 2020 to an average of $520 for a three-bedroom house. Young professionals in Orange’s agriculture, healthcare, and education sectors—key pillars of the local economy—struggle to find affordable housing, prompting some to leave for cheaper towns like Bathurst or Dubbo.
Gentrification and Changing Demographics
Tourism also sparks gentrification, subtly reshaping Orange’s character. As wealthier buyers move in, drawn by the city’s tourist appeal, older, more affordable neighborhoods see renovations and price hikes. Streets once lined with modest workers’ cottages now boast restored facades and manicured gardens, marketed as “character homes” to affluent newcomers. This shift can price out original residents, altering the social fabric of a town historically tied to farming and mining.
Data from the Australian Bureau of Statistics shows Orange’s population growing at 1.5% annually, outpacing many regional peers. The proportion of residents aged 55 and over has risen, reflecting an influx of retirees, while the under-35 cohort shrinks as housing costs climb. Tourism, while not the sole driver, amplifies this trend by making Orange a magnet for those with disposable income.
Balancing Tourism and Housing
Orange’s leaders face a tricky balancing act. Tourism pumps millions into the local economy—$250 million in 2023 alone, per Destination NSW—supporting jobs and small businesses. Yet unchecked, its impact on property prices risks hollowing out the community that gives Orange its charm. Some propose solutions like capping STRs, a policy trialed in places like Byron Bay, where short-term rentals can’t exceed 60 days per year in certain zones. Others advocate for more housing development, though Orange’s hilly terrain and agricultural zoning limit sprawl.
Incentives for long-term rentals could also help. Tax breaks or grants for landlords who opt out of Airbnb might ease the rental crunch, stabilizing prices for residents. Meanwhile, promoting tourism in nearby towns like Millthorpe or Canowindra could spread the economic benefits—and the property pressure—more evenly across the region.
Looking Ahead
The interplay between tourism and property prices in Orange is a microcosm of a global trend: destinations thriving on visitor appeal often see real estate markets heat up. For Orange, the challenge is harnessing tourism’s upside—economic growth, cultural vibrancy—while mitigating its downsides—affordability, displacement. As of April 2025, property prices show no sign of cooling, with Domain forecasting another 5–7% rise by year-end, driven by sustained tourism and regional migration.
For now, Orange remains a case study in transformation. Its tree-lined streets and vineyard vistas, once a quiet backdrop to rural life, are now assets in a booming market. Whether this growth enriches or strains the city depends on how its leaders, residents, and investors navigate the road ahead. Tourism has put Orange on the map—and on the property ladder—but at what cost?
