The Bay of Plenty's economic outlook has topped the country for the sixth quarter in a row.
New cars, new houses and record exports of kiwifruit were helping keep the Bay of Plenty's economic growth strong, the latest Westpac regional roundup report revealed.
Regional roundup author and industry economist David Norman said economists believed the Bay's future was the most optimistic across the 11 regions.
"It has been an exceptionally strong last couple of years for the region, with booming kiwifruit, avocados, a surprisingly resilient forestry sector, strong population growth, construction and house prices creating a sense of wealth and positivity for many."
Priority One project manager Annie Hill said benefits like job growth, higher incomes and increased investment were tempered by challenges that arose.
Population growth as a result of the growing economy meant house prices were unaffordable for many people, which meant employers could have difficulty employing skilled and unskilled staff.
"The increase in desirability of Tauranga and the Western Bay as a place to live will put pressure on some of our key infrastructure, for example roading," Ms Hill said.
The report said residents were investing in new vehicles, with sales in the latest quarter approaching 3300 - up about 10 per cent quarter-on-quarter.
Ebbett's Tauranga dealer principal Julian Clements said the last quarter had been very strong and if remained that way sales would surpass last year.
"We've definitely been enjoying it. The economic growth has been reflected in our sales. People recently moved to the area in the last six to 12 months are adding a car to their purchases and we've had a strong first half of the year," Mr Clements said.
New dwelling consents rose again in the June quarter, up 55 per cent over the previous year.
The trade sector is a big player in Tauranga's economy so consistent migration to our area is welcomed along with our local business growth. We don't want to create a boom and bust economy.
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The report said the construction sector was clearly gearing up to meet demand.
Tauranga Master Builders Association president Johnny Calley said it was "an exciting time" in the Bay.
"The trade sector is a big player in Tauranga's economy so consistent migration to our area is welcomed along with our local business growth. We don't want to create a boom and bust economy."
The increased work load meant there was a lack of qualified tradesmen but patience was crucial and the right tradesman was worth the wait, Mr Calley said.
The region was also being buoyed by record exports of kiwifruit leading to large gains in the value of horticulture land, with returns ranging between 7 per cent and 12 per cent for green and gold kiwifruit respectively.
Horticulture was expected to continue to enjoy solid returns.
The report revealed Bay of Plenty had the most optimistic economic future out of all regions and economists expected to see continued growth in the next 12 to 18 months.
Tourism was likely to see continued growth - although the region had not been capturing its share of the boom to the same extent that other parts of the country had, the report said.