New winner to title of NZ's fastest growing city

Hamilton, right, and Tauranga. Photo: Stuff.

Move over Tauranga, after 27 years of holding the crown as the country’s fastest growing city, there’s a new top town - Hamilton.

In a tale of two cities, the humble but mighty tortoise of Waikato has outrun the hare while it was taking in the sun.

In the economic “golden triangle” of Auckland, Hamilton and Tauranga, Tauranga and the Mount have long enjoyed being a tourist Mecca, a city of beautiful beaches and boomers, looking to its cousins over the hill as a landlocked town of bogans and boy racers.

As for Tauranga’s ‘boomer’ label of being the retirement capital of New Zealand, the median age in Tauranga in 2023 was 40 years, not much older than the national average of 38.

Tauranga has been the fastest growing in New Zealand for most of the last 27 years. Recent communications from Tauranga City Council still describe it as the “fastest-growing”.

However, latest Population Estimates & Projections data provided to Stuff from Statistics New Zealand show, between 30 June 2022 and 30 June 2023, Hamilton city grew 3.4 per cent while Tauranga city (which includes the Mount and Pāpāmoa) grew 2.5 per cent.

Hamilton city also grew faster than any region between 2022 and 2023. Waikato region was the third fastest growing region (behind Auckland and Otago regions), growing by 2.3 per cent between 2022 and 2023, whereas Bay of Plenty was fourth, growing 2.1 per cent.

Looking at the longer term, between 30 June 2018 and 30 June 2023, Tauranga city grew by an average of 2.6 per cent per year whereas Hamilton city grew 1.9 per cent, says a spokesperson from Statistics New Zealand,

“They were the first and second fastest growing cities.

“Over the same time, Bay of Plenty region grew 2.0 per cent per year on average (the fastest growing region) and Waikato grew 1.9 per cent per year on average (the third fastest growing region, behind Tasman region).

Mount Maunganui, Tauranga, Bay of Plenty where the beach is consistently named the best in New Zealand. Photo: Stephanie Martelli.

Using that measurement, Tauranga city was the faster growing area than Hamilton city.“

It’s still a close race, according to Infometrics senior economist Nick Brunsdon.

“As to which is the fastest growing city in 2024 – that will be a close call between Auckland, Hamilton and Tauranga.“

The notion of Tauranga as the fastest growing area, is “largely correct”, although 2023 was an exception, he says.

“From 1996 to 2023, Tauranga City grew 102 per cent, making it the fastest growing city by a long margin. It was the fourth fastest growing territorial authority – with Queenstown-Lakes, Selwyn and Waimakariri all growing faster.

Auckland grew 56 per cent and Hamilton grew 63 per cent over 1996-2023.

Tauranga was the fastest growing city in 22 of the past 27 years.

“2023 is the exception with Hamilton and Auckland overtaking Tauranga.“

So what happened in 2023 that swiped the cup from Tauranga?

The answer lies in migration, says Brunsdon.

“With our borders closed through the pandemic, Hamilton and Auckland suffered from a lack of international migrants, which slowed their population growth, and meant they had a big catch up in 2023 once borders reopened.“

Tauranga is still well placed to grow more, he says.

“Looking around Auckland, Tauranga and Hamilton, the number one driver of population is different in each – Auckland is international migration, Tauranga is internal migration, and Hamilton is natural increase (births).”

Although Auckland grows from international migration, those people may then move outside Auckland, driving Tauranga’s internal migration, he says.

“Tauranga is well-placed to pick up on that outflow from Auckland, and more generally its place in the golden triangle means its within 3 hours drive of half the country’s population – an easy move.

“Tauranga has a wide range of employment opportunities, so it’s both an attractive and viable option for people of all ages and stages, it’s not a story about retirees.“

Comparing Hamilton and Tauranga, Hamilton is better able to grow its own workers, whereas Tauranga is better able to attract workers to move in, he saysd.

Relax, it’s not a competition between The Tron and Tauranga, says Nigel Tutt, chief executive of the Bay of Plenty’s economic development agency Priority One, which is tasked with luring national and international businesses to the splendour of Tauranga Moana.

A $3 billion-plus project includes an inland port for Hamilton. Tauranga Port will be one of the ports which will be used to unload frieght and be transported to Ruakura by rail to the new inland port.

“It’s not a competition between the cities to grow faster... from an economic perspective the cities are heavily linked, for example with the Port of Tauranga and Ruakura inland port, and we want Hamilton to thrive – quality of an economy is much more important than growth rate. We’d love to have the cities even better linked in the future, a four-lane highway between us being right at the top of our needs.

That way, it will be easier for people from Hamilton to find some sunshine.“

If the reference to the sun feels like a burn to Hamilton, it’s because it is.

It may not be a competition, but if it’s sunshine, and beaches people want, Tauranga wins with 260km of coastline.

Tauranga City Council’s Commission chair Anne Tolley says Tauranga has key points of difference.

“The country’s best beaches and a beautiful harbour, iconic Mauao with its phenomenally popular walking tracks, and a great climate which allows us to take full advantage of our wonderful environment.”

Mount Main Beach is consistently named the best in New Zealand. This week it was the only Kiwi beach in the top 10 in the South Pacific category of the world’s best beaches awards.

The Bay of Plenty is home to some of New Zealand’s best beaches.

While Hamilton may offer more later night takeaways, the Bay prides itself as a foodie haven, known for kiwifruit, avocado, honey, seafood, and popular annual food festival Flavours of Plenty.

“We’re the city of kai, coast, and friendly hosts,” said Loretta Crawford, head of destination marketing at Tourism Bay of Plenty.” 

It is a competition to proud Hamiltonian, TV presenter and RNZ broadcaster, Jesse Mulligan.

“Come on Tauranga, don't make me laugh. You're a nice enough place to visit but even if you tack on Mount Maunganui (and I feel sure you will), you'll come up short against Hamilton, New Zealand's greatest city,” says Mulligan.

“Even Aucklanders wish they were in Hamilton - look at the way they are quietly but steadily building their houses closer and closer to it. Who can blame them?

“Tauranga may have one coastline but Hamilton has two: the eastern and western shores of the mighty Waikato river. We also have the best nightlife, world class gardens and blimmin good ice cream. Even the one thing Tauranga had going for it - the port - has been superceded by Hamilton's new inland port, a logistics superhub that has turned a sleepy dairy town into an economic giant.

“So cheer up Tauranga - go make a sandcastle! And save a spot for us at the beach next summer."

5 comments

Why

Posted on 26-02-2024 16:26 | By treekiwi

would Tauranga want to be the fastest growing city when we have no infrastructure building alongside it to serve the population? No room on the roads, no affordable housing for the people, inadequate city water supply, no satisfactory public transport, outrageous rise of rates.


Treekiwi

Posted on 27-02-2024 06:45 | By Thats Nice

Yes, spot on with your comments. Tauranga is definitely not an attractive area to live in anymore sadly and will take a lot to turn it around again after being ruined by the current lot.


@ treekiwi

Posted on 27-02-2024 08:43 | By Yadick

Agree with you.
What did they expect. Tauranga used to be a stunning, thriving coastal city.
Now it's a heartless mess.
The Commorons are nothing more than the nails in the coffin of councils before them without tangible vision. To quote (I think) Bruja - trough slurppers. A city of office blocks, art galleries,
Museums, meeting rooms and filth does not bring back a bustling, exciting, joyful shoppers vibe.


The Master

Posted on 27-02-2024 11:52 | By Ian Stevenson

Now the fun stuff...

The TCC commissioners wanted to bring in "Culture" and other wonderments to help the city grow faster... obvious that little scheme plan easily failed predictably... like so much else.

The interesting thing is that "Culture" (being that desired by a few, paid for by the many) isn't wanted at all, yet the "Fab-4" have decided that they know best.

We have failed projects all over the place, all the Fab have achieved is to take that abject failure to a whole new level. meanwhile refusing to "listen" or "hear" anything contrary to the prior determined self preferred answers.

Is that negligent?


The Master

Posted on 27-02-2024 11:54 | By Ian Stevenson

@ Yadick, agreed.

It is as if the complete and utter destruction of the CBD is planned to be so intentionally?


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