Home buyers are turning to cheaper Tauranga suburbs as prices in the more sought-after areas continue to rise.
QV figures shows the average house sale price in Tauranga District rose 2.1 per cent in the three months to April to $449,331.
The cheapest area to buy a house across the region for the quarter ending March 31 was Parkvale with a median house price of $251,000, while the most expensive area was Bethlehem at $530,000.
In Western Bay, the cheapest area to buy was Te Puke at $270,000 and the most expensive was Pukehina at $550,000.
Harcourts Tauranga managing director Simon Martin said the Bethlehem market was "going quite well" with new infrastructure such as the Bethlehem town centre, which gave the area a "second wind".
"There have been a number of Aucklanders that are buying in there ... they're getting good money in Auckland for a house and coming here and buying a house that's probably better than what they sold in Auckland.
"Some of them have around $1 million and they come down here and buy something for $600,000 or $700,000."
Bethlehem properties were typically new larger homes with three bedrooms, two bathrooms and a double garage, he said.
Parkvale, by contrast was an older subdivision popular with first-home buyers.
"You can buy a really good first home or investment property there."
Ross Stanway, chief executive of Realty Services Limited, said the house price changes did not necessarily indicate a long-term trend as a higher median price could mean fewer sales in a high price bracket or a disproportionate number of sales in a lower price range.
Mr Stanway said in the last three years, Matua, Maungatapu and Bethlehem had showed consistent demand and rising medians.
Mount Maunganui's prices were holding steady with supply and demand in balance.
Hairini had shown a large increase in median prices in the past three years due to significantly increasing demand from buyers recognising good value for money, Mr Stanway said.
He said other suburbs experiencing increasing demand over the three years from an initial lower median were Pyes Pa, Greerton, Brookfield, Ohauiti and Judea.
Greg Purcell, franchise owner of Ray White Realty Focus in Mount Maunganui and Papamoa, said 2014 had been an "odd" year so far because a lack of housing stock was impacting the housing market. He said it was hard to know whether the house prices were being influenced by loan-to-value ratio restrictions as lower end players could have been taken out of the market.
Papamoa had benefited from people opting out of the less affordable Mount Maunganui market in recent years as it was a more affordable market in a prime location, Mr Purcell said.
Affordable housing is shaping up to be a key election issue as political parties compete to offer the best way to increase housing stock.
The Government is freeing up land for development under its Auckland Housing Accord and also lifted some tariffs on building materials in this year's Budget.
Labour has vowed to build 10,000 new homes a year for a decade under its KiwiBuild plan and proposes compulsory KiwiSaver and tighter immigration policies.
Last month Labour leader David Cunliffe accused Prime Minister John Key of being "in denial" about a housing crisis after the OECD's latest Economic Outlook report said New Zealand house prices were among the most overvalued in the developed world.
Meanwhile, thousands of young couples and families are struggling to get into their first home amid rising interest rates and lending restrictions on low deposit mortgages.
Political commentator and Otago University lecturer Dr Bryce Edwards said the home affordability debate favoured opposition parties over a government perceived by some to be doing nothing about the problem.
In contrast to soaring Auckland values, most regional values remain well down on their worth from the 2007-08 market peak.