More people moved to New Zealand last month than left and there was the smallest loss of people to Australia in almost four years.
Official figures show the country had a seasonally adjusted net gain of 2,100 migrants in August. The last time net migration was that high was in October 2009.
The net loss of 1,100 migrants to Australia was the smallest since November 2009 and it continues the trend of fewer people moving across the Tasman.
On an annual basis, New Zealand gained nearly 13,000 migrants, compared with a net loss of 4,000 last year.
Senior ASB economist Jane Turner says there has been a steady improvement in the number of people coming back to New Zealand from Australia.
She says the figures reflect New Zealand's relative economic strength compared to the rest of the world, in particular Australia.
"The New Zealand economy's really starting to pick up in terms of momentum and that's been underpinned by the Canterbury rebuild," she says.
"We're also seeing a broadening in economic activity and we're seeing growth in places like Auckland as well."
Ms Turner says the housing market, particularly in Auckland and Christchurch, is already considerably under-supplied and further population growth will put additional pressure onto the housing market.
