The attraction of sun and sea means Tauranga is becoming an increasingly popular place to settle down.
But a new report says Tauranga is now the ninth least affordable city in the world to buy a house in.
Its desirability, coupled with an influx from Auckland, is now beginning to push locals out of their own market.
Twenty-six-year-old local Josh Martin recently sold his first home and brought another, and says the second purchase "has literally cost us twice as much as our first home did".
Tauranga mayor Greg Brownless says he wouldn't mind if newcomers "became part of the community", but instead "people are just coming here for houses for investment".
"That isn't good for the local people who really do need a chance" he told Newshub.
The Tauranga council is attempting to meet demand by rezoning land for residential construction.
Ross Stanway from Realty Services says buyers need "a reality check", based on how much they have to spend and what sacrifices they need to make.