A grim outlook for Tauranga's economy.

The region is projected to lose $2.5 billion and more than a thousand jobs, unless more investment is made into housing and infrastructure.

It's a long term prediction of what could happen, if action isn't taken.

Tauranga City Council Commissioner Chair Anne Tolley says the region's housing has been failing to keep up with the growth in population.

"If they don't invest in housing they will be about 5000 houses short, and will be looking at an average house price of close to a million dollars."

Tolley says the council plans to invest four billion dollars on fixing the issues, as part of its long-term budget.

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