It found that Tauranga’s median property value was 7.8 times the median gross household income in the second quarter of 2026.
This was down from a peak of 11.7 in late 2021 and below Tauranga’s long-term average of 8.2.
Cotality Housing Affordability measures. Graphic / Cotality
A median home in Auckland is worth 7.2 times household income, 6.7 in Christchurch, 6.3 in Hamilton and 6.1 in Dunedin. Wellington is the lowest at 5.5 times income.
Tauranga’s mortgage payments remain the highest among the main centres, taking 47% of gross median household income, though that is below Tauranga’s long-term average of 52%.
In Auckland, that figure is 43% of household income, and in Wellington it is 33%.
Cotality chief property economist Kelvin Davidson said Tauranga remained expensive compared with other parts of New Zealand, but it was more affordable relative to its own history.
“So in the real world, then, one way to talk about it is to say that Tauranga remains a relatively expensive market.
“But for Tauranga locals, it may not feel as expensive as in the past.”
Cotality chief property economist Kelvin Davidson. Photo / Peter Meecham
Aside from a short period in early 2020, he said affordability had not looked this good on a sustained basis since 2015-16.
Davidson said Tauranga’s housing market could be more influenced by wealth and equity, with buyers moving from elsewhere bringing existing wealth into the market.
“So looking at affordability measures based on income will always tend to look a bit more inflated, because wealth is the thing propping up or driving house prices.”
He said this did not mean Tauranga was inaccessible to local buyers.
Davidson said first-time home buyers have made up 24% of market activity so far in 2026, compared with the long-term average of 17%. They had never been above 20% before 2023.
“House prices have already dropped, and affordability for local people on local incomes is at least a lot better than before.”
Priority One chief executive Dave Courtney. Photo / Supplied
Priority One chief executive Dave Courtney said Tauranga’s affordability problem came down to both housing costs and local incomes.
He said Tauranga had experienced sustained population and economic growth, but housing and infrastructure had not always kept pace.
Tauranga’s unaffordability made it harder for businesses to attract and retain workers, particularly young people, those starting their careers, and lower- to middle-income workers.
“For employers competing nationally for skilled people, the overall proposition matters — salary, career opportunities, housing, transport and quality of life all contribute to whether someone chooses to come here and, importantly, whether they can stay.”
Courtney said there was no single fix; more housing, infrastructure, and continued growth in incomes through productivity, skills, innovation, and investment were needed.
“Ultimately, a successful growing region has to remain a place where the people who work here can afford to live here.”
Tauranga Mayor Mahe Drysdale. Photo / Alex Cairns
Tauranga Mayor Mahe Drysdale said it was encouraging to see housing affordability improving, though it remained one of the city’s biggest challenges.
“Tauranga has been one of New Zealand’s fastest-growing cities for many years because it is such a desirable place to live, work and raise a family, which has driven strong demand for housing.”
Drydale said the demand had not always been matched by the infrastructure needed to support it, contributing to housing supply constraints and higher costs.
He said the council’s planning, guided by the SmartGrowth strategy and its Long-term Plan, focused on intensification, higher-density development, and greenfield growth, alongside investment in infrastructure.
“Tauranga is an attractive place to live, learn, work, and play, so it will continue to grow.”
Harcourts Tauranga managing director Simon Martin. Photo / George Novak
Harcourts Tauranga managing director Simon Martin said he expected Tauranga to remain among New Zealand’s least affordable main centres because of “what it has to offer”.
He said Tauranga had a wide range of property prices, from more affordable homes to high-value coastal properties around Mount Maunganui.
Those higher-priced homes helped push up the city’s median house price, which could keep Tauranga looking less affordable compared with other centres, Martin said.
“When you’ve got coastal beachfront houses which are so close to a major city, the values are going to be higher in that marketplace.”
Tauranga’s housing affordability — by the numbers
Tauranga’s median property value is $953,546, compared with a median annual household income of $122,887.
A 20% deposit now takes 10.3 years to save, down from 15.6 years in 2021 and below the 11‑year average.
Rent absorbs 30% of gross median household income, slightly above Tauranga’s long-term average of 29%.
Zoe Blake is a multimedia journalist at the Bay of Plenty Times and Rotorua Daily Post.