Two income earners are required to service a mortgage in most parts of the country.
Mr Donaldson said Rotorua was full of amenities, capable of hosting 10,000 visitors per night and more affordable than nearby regions.
Tauranga has been determined to be the second least affordable city in New Zealand by the 9th Demographia International Housing Affordability survey.
"I think clearly Auckland has problems in its housing supply," Mr Donaldson said. "NZTA [NZ Transport Authority] predictions are the population of Auckland will grow by the size of Wellington over the next 20 years. That will put pressure on, and Rotorua is well positioned to benefit from the overflow."
Unlike Tauranga, Rotorua hasn't been asked by the Government to speed up new housing developments. "But we are setting up a pop-up shop on 1225 Tutanekai St to consult with the public about the city's needs as part of our 30-year infrastructure plan. And we're considering notifying district plan [this week], which we hope will provide ample residential development."
Across the country, "the median income for the typical buyer is not high enough to buy a median priced house, even with a 20 per cent deposit," the Roost report said.
Standard affordability and first home affordability for Waikato/BOP is in the middle of 13 regions nationwide.
Roost's report recommended renting in some regions, calling renting "what you are left doing if you can't afford to buy".
Nationwide, median weekly mortgage payments are up $46.85 on last year. A floating mortgage rate of 6.72 per cent and a lower-quartile house price of $285,000 will require a weekly mortgage payment of $385.71.
Roost advises people to save about $57,500 for a first quartile house.
