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The best (underrated) places to live in New Zealand

Whether you’re looking to save money or just want a change of pace, these underrated towns and cities have much to offer. We explore the best ‘underrated’ places to live in New Zealand.
By · September 6, 2024
The best (underrated) places to live in New Zealand

Read any article on the best places to live in New Zealand, and you’ll find some familiar names topping the list. While there’s nothing wrong with moving to Auckland, Wellington, Christchurch or Queenstown, there’s more to Aotearoa than these popular places.

Whether you’re looking to save money or just want a change of pace, these underrated towns and cities have much to offer.

Explore the best ‘underrated’ places to live in New Zealand

Hamilton

Population: 165,400
Average home price: $811,082

In 2024, Hamilton took the crown from Tauranga as New Zealand’s fastest-growing city. Situated in what’s known as the ‘golden triangle’ Hamilton is an hour’s drive south of Auckland and forty minutes west of Tauranga.

But wait, how can a rapidly growing city be classified as underrated? Here’s the thing: many New Zealanders have an outdated view of Hamilton. For a long time, the town was associated with ‘bogans’ and ‘boy racers’ and just generally looked down upon. Today, Hamilton is known for its beautiful gardens and for its appealing mix of urban and suburban.

As Auckland’s population has surged and Tauranga’s costs have risen, Hamilton has emerged as an increasingly attractive option for those seeking a balance of affordability and livability. With a growing economy and a strong job market, Hamilton offers career opportunities while remaining an affordable place to live.

Plus, its proximity to Auckland makes it a great option for commuters. Despite its growth, Hamilton retains the charm of a smaller city, ideal for raising families or pursuing the suburban lifestyle that many Kiwis now find beyond reach.

New Plymouth

Population: 88,900
Average home price: $629,700

New Plymouth is located in the heart of Taranaki, a region that often flies under the radar. While the region might not receive as much attention as Auckland or Waikato, therein lies its appeal. The region is home to beautiful landscapes, from lush natural rainforests to breathtaking black sand beaches, making it an ideal place to call home.

New Plymouth offers the best of both worlds—remote enough to provide a sense of slow but still big enough to ensure that you’re not missing out on growing your career or getting on the property ladder. It also has a diverse job market that includes offshore oil drilling, engineering, and technology.

If you’re looking for balance in your life, New Plymouth has a lot to offer. There’s a strong emphasis on healthy living, organic food, and an active lifestyle. Surfing is particularly popular, with large stretches of the coastline known for their pumping waves. Plus, with Mount Taranaki on your doorstep, hiking is just part of the lifestyle.

Whether you're a family looking for a peaceful environment, a couple seeking a balance of work and leisure, or a single person wanting to immerse yourself in a health-conscious community, New Plymouth offers something for everyone.

Invercargill

Population: 56,800 
Average home price: $468,000

Invercargill is often overlooked in favour of Christchurch or Dunedin (or lets face it, nearly anywhere else). However, it is a city with a lot to offer, particularly for students and families.

A standout feature of Invercargill is the Southern Institute of Technology (SIT), which offers zero-fee study—a significant drawcard for any looking to complete their tertiary education without the burden of hefty student loans. This initiative has made Invercargill an educational hub, attracting students from across New Zealand and beyond.

The Invercargill Licensing Trust - which makes money from the sale of alcohol - heavily invests those funds back into the community. As a result, Invercargill has facilities that rival those of much larger cities.

Thanks to these funds, Invercargill has an impressive indoor stadium for everything from netball, basketball, indoor volleyball, tennis and squash courts, it also has, a world-class velodrome, and numerous other public spaces from libraries to parks, outdoor hockey turfs that are well maintained and open to public use.

Additionally, the recent rebuild of the city centre has given Invercargill a fresh, modern look, making it even more appealing. The best part is that even with so much investment, Invercargill is still an affordable place to live.

Dunedin

Population: 128,800
Average home price: $642,631

Dunedin is known as a student city, thanks to Otago University, which is located in the central city. However, the city has a lot to offer beyond academia.

Dunedin is not only a cultural and educational hub but also an increasingly attractive place for investors and businesses. Historically, Dunedin was New Zealand’s most influential city, leading the way in education, commerce, manufacturing, communications, and the arts. Today, there’s significant investment in key industries such as education, health, design, niche manufacturing, and ICT. These sectors are driving Dunedin's economic growth.

Affordability is another feature that sets Dunedin apart. The cost of living is relatively low, making it an attractive option for students, young professionals, and families. Dunedin also offers easy access to nature, with beaches, hills, and stunning coastlines all part of the city experience.

Whether you're drawn by Dunedin’s art scene, the university, its affordability, or its natural surroundings, Dunedin is a place where you can enjoy a high quality of life without the high price tag.

Wanganui

Population: 42,800
Average home price: $535,000

Once a bustling river port and one of New Zealand’s most important early settlements, Whanganui flies under the radar today. Its emerging arts and design scene, heritage buildings, and affordable cost of living make it an appealing place for those looking for a balanced lifestyle.

The city’s economy is supported by a wide range of industries, including manufacturing, agriculture, and small business. The city is committed to fostering creativity and innovation in the region. It’s a UNESCO City of Design, making it the perfect hub for artists, designers, and creative thinkers to move.

Wanganui is an ideal place for people who value both a laidback lifestyle and want to move somewhere with economic potential.

Oamaru

Population: 14,000
Average home price: $453,750

Oamaru is a small but charming town on New Zealand’s South Island. Over the past ten years the town has developed a unique point of difference - its Victorian heritage and creative art scene.

Known as the ‘Steampunk Capital of the World,’ Oamaru’s quirky yet quaint atmosphere really sets it apart. The town’s well-preserved historic precinct features limestone buildings that date back to the 19th century and provide a glimpse into New Zealand's past. Today, many of these buildings are now home to artisan shops, galleries, and cafes.

While Oamaru’s economy is small, it does offer an affordable lifestyle, which makes it an attractive lifestyle option for families, retirees, and creatives. The town’s economy is supported by agriculture, tourism, and, increasingly, the arts.

Oamaru is located on the coast and is also famous for its wildlife, particularly the blue penguins that come ashore at dusk.

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