Home loan affordability in Rotorua worsened notably from 35.1 per cent in August this year to 41.7 per cent in September, compared with 37.1 per cent a year ago.
According to the latest REINZ figures, the median house price in Rotorua jumped $17,300 to $272,000 in the month to September.
Rotorua's average weekly pay cheque after tax for people aged 30-34 is now $760.08 - up from $745.22 a year ago.
Harcourts Rotorua sales manager Hielke Oppers said it wasn't just first-home buyers who had been affected by the home loan changes, but homeowners looking to upgrade.
"It's an emotional blow. We're definitely seeing people who were able to afford properties before those restrictions came into place who have now been turned down or who are no longer looking."
Despite the recent trend, Rotorua housing was still relatively affordable with homes selling between $270,000 and $280,000 in recent years.
"There are still plenty of people looking to buy, but it's slowed down the increases that we have seen."
Nationally, housing affordability worsened from 56 per cent in August to 57.5 per cent in September after median national house prices rose $10,000 to $400,000.
House prices surged to new record highs ahead of the Reserve Bank's low deposit mortgage restrictions as buyers scrambled to get in before the October 1 deadline.
However, October would be the "first key test" of whether the measures were starting to cool the property market, the report found.
"Borrowers and banks are adjusting to the new environment," said Roost Mortgage Brokers spokeswoman Colleen Dennehy. "Those with more than 20 per cent equity are in a much stronger position to negotiate with the help of a broker."
Auckland remained the toughest location for first home buyers, where it would take 89.2 per cent of an after-tax income to afford a house in South Auckland, and 100.7 per cent on the North Shore. The cheapest place to buy was still Wanganui at 28.4 per cent affordability.
