Mike Hosking: It's a good sign when cities become less affordable

Opinion

The Herald called it New Zealand's least affordable city shocker. But when you think about it, it's not really. Tauranga, in the mighty Bay of Plenty, is now less affordable than Auckland.

We also got the news that rents in Nelson are higher than Queenstown. Is that another shocker? I don't think so.

This is, in fact, news to celebrate. Why? Because regional New Zealand is booming, and you can see why.

A mate of mine quit TV last year, sold up, opened a shop in Nelson. And why wouldn't you? He's probably sitting in the sun, selling his wares, going to Ruby Bay for a swim on weekends, going to Neudorf for lunch and wondering what the hell he was ever doing commuting over an hour to work each day in Auckland.

And that's why Nelson rents are high - because the place is brilliant and people want a slice of it. If you're a regular to this programme, you will know we've talked extensively about Tauranga, in the Bay of Plenty… of everything.

What possible surprise can it be, that it's no longer as affordable as it was? It's a mecca. It's a boom region. Consents are through the roof, the sun is out, everything is accessible. Ask Peter Williams the news reader, he commutes.

As it was always going to be, populations shift, they react to circumstances, and they adapt. As major centres become fuller, and busier and more expensive, there will always be a group who look for alternatives.

If you can ply your trade anywhere, why not ply it somewhere spectacular? If you're a teacher or a cop, why not teach or police where the sun shines? And as that happens, demand for services rises, demand for houses goes up, and as they do, so too go the prices.

Central Otago started it years ago, when it emerged as a genuine contender to Auckland for cost of living, and that had the added attraction of being a tourist mecca and international bolt hole.

So let's see what we've got. Beauty, community, accessibility, top level services, and increasing demand from people who want a piece of that. How can we possibly be surprised that the bill for such an attraction goes up?

Nelson and Tauranga should be raising a glass. This is all good news, not a shocker.