Mayor Tom Tate cited a lack of funding after stepping in to host the next edition.
The province has pulled out, after Victoria's similar move last month.
The Gold Coast mayor says the 2018 host city could pick up the Commonwealth Games from Victoria.
"It is very disappointing," said the two-time Games shot-put champion.
"We are in no position to be able to afford the Games, sadly."
NZ officials are adamant the Games are in no danger of becoming extinct.
The next Games were scheduled to be staged across the Australian state in a new hosting model.
"This is a massive opportunity, but we need to figure out if we can afford it as a country."
New Zealand last hosted the Commonwealth Games in 1990 at Auckland.