Rotorua's average weekly pay cheque after tax for people aged 30-34 is now $770.35 - up from $749.09 a year ago.
Ian McDowell, of McDowell Professionals, said there was "good value" property available in Rotorua.
"Our houses are pretty cheap, really."
Mr McDowell said his own sales figures showed a fall in median prices last month.
The drop was largely thanks to more lower-priced properties being sold, he said.
"Homes are very affordable in Rotorua and [while] the cheaper ones are not in the best areas, they're basically bought as investment properties."
Some local houses sold for less than $100,000, he said.
Nationally, housing affordability improved from 60.7 per cent in December to 57 per cent in January after national house prices dropped $25,000 to $402,000.
The median weekly pay packet after tax for the 30-34 age bracket is now $820.19 up from $799.36 a year ago.
January was the fourth month of the Reserve Bank's lending restrictions on low deposit home loans and come alongside a rise in interest rates ahead of an expected hike in the official cash rate, Roost said.
Roost spokesman David Chaston said there was evidence the lending restrictions were changing behaviour, and slowing overall demand for housing.
" ... the impact is building as banks and buyers get to understand the restrictions.
"It is now more likely these developing trends will improve affordability."
Home loan affordability improved last month in all 24 cities except Whangarei, Napier, Wellington City and Invercargill.
Auckland's North Shore retained its spot as the country's least affordable, requiring 102.1 per cent of an after tax income to afford a house there.
Wanganui was still the cheapest place to buy at 27.6 per cent affordability.
