Meanwhile, new dwelling consents have declined in Wanganui from 24 to eight from May 2013 to May this year. But nationwide trends show consents are at their highest level since 2007, despite flattening in recent months, according to Statistics New Zealand.
Home Trust Mortgages director Robert Puklowski said the bottom line in Wanganui was property was still very affordable.
"It is only the interest rates that might be having an impact and with loans being smaller than most other places, people can often purchase a good-quality property for not much more than it costs to rent - sometimes less."
Although incomes were probably lower than the main centres, levels had to be considered against lower property values, he said.
Massey's real estate analysis unit used average weekly earnings and interest rate figures from Statistics NZ and the Reserve Bank, and compared those with data from the Real Estate Institute to reach its conclusions.
It showed a national deterioration in home affordability in the past year and a rising gap between house prices in larger urban centres and provincial areas.
Nationally, 2125 new dwellings gained consent in May, including 195 apartments. The regions with the most new dwelling consents were Auckland, with 611 (including 109 apartments), Canterbury 605 (including 46 apartments) and Waikato 192.
Registered Master Builders Association chief executive Warwick Quinn said he expected 23,000 to 24,000 residential building consents to be issued this year, up from 21,300 last year and 16,929 in 2012. Auckland and Canterbury still comprise nearly 60 per cent of all activity and he predicted this would continue.
Meanwhile, legislation to limit the amount councils can charge in development levies is expected to pass before the general election. The move is expected to limit the cost of new homes, though interest rates are also tipped to increase.additional reporting Ann Gibson