House prices in the Gong jumped by $100,000 in the year to December 2016, with a median house price of $700,000, Domain Group’s Regional House Price Report shows.

Melbourne’s median house price is $795,447 and Sydney’s $1,123,991.

Shadow Minister for the Illawarra Ryan Park said it’s a multifaceted issue that’s not going to be solved with one solution.

“One of the biggest issues is stamp duty,” Mr Park said.

“First home buyers can’t afford an obstacle that just makes things harder for them to enter the marketplace.”

It comes as the number of first homebuyers entering the market has dropped significantly in the last five years, falling from 18.3 per cent in 2011 to 7.98 per cent.

Wollongong MP Paul Scully said investors and Sydney residents were to blame for increased pressure on the market because they’re looking south to greener pastures.

Mr Scully called on NSW Premier Gladys Berejiklian to lobby the federal government to reform negative gearing so to “take the heat out of the market”.

Greens senator Lee Rhiannon agreed and said negative gearing and capital gains tax discounts were directly contributing to the housing affordability crisis.

“Decades of generous tax concessions to investors have supercharged the housing market,” Ms Rhiannon said.

“Federal and state governments should be making it easier for people to buy their first home and not their third or fourth property.”

House prices in Wollongong were up 16.7 per cent over the year and a staggering 7.7 per cent over the December quarter.

Sydney prices grew 10.7 per cent over the year and 4.7 per cent over the quarter.

Apartments in the area also experienced a price jump – up 4.1 per cent to $501,000.

It is now one of the state’s most popular coastal destinations, Domain Group chief economist Andrew Wilson said.

“It’s now being considered a part of Greater Sydney,” he said.

“It’s the strongest result of all the major regional markets … likely because of its proximity to Sydney and relative affordability.”