More people opting to live harbourside has prompted house prices in Tauranga to skyrocket

CoreLogic NZ's head of research, Nick Goodall says the city's had 10.2 per cent growth in the last quarter.

The average home there now costs nearly 880-thousand-dollars.

It's a far cry from the last time the region saw such growth, when a 10.5 per cent rise meant a price tag of 350-thousand in May 2004.

Goodall puts it down to people using the increase in equity in their homes, to move to a bigger property.

He says it's happening across New Zealand.