An assessment of the district’s housing market completed on behalf of Queenstown Lakes District Council (QLDC) has revealed some grim figures but few surprises. 

Under new government regulations, some councils around New Zealand must complete an assessment of their district’s housing market, including recent trends, future predictions and opportunities for additional affordable housing.

Prepared for council by M.E Consulting, Queenstown Lakes’ housing report found that demand for housing would likely increase by 16,300 dwellings by 2050 - an increase of 99 percent.

The highest level of demand would be in Wānaka and Albert Town, the report said. Additionally, there is likely to be a significant shortfall in affordable housing. 

“Over time, house price growth is expected to be faster than growth in real incomes in the district and housing affordability is projected to decline over the long term to a shortfall of 6,960 affordable dwellings by 2050 for non-owner resident households,” the report said.

“This is particularly in price bands up to $600,000 but also includes small-moderate shortfalls of dwelling for those that could afford to pay up to $1.2M.”

The report said council planning and infrastructure was not putting any upwards pressure on dwelling prices. 

“Rising prices and therefore declining housing affordability is being driven by a range of other local and national factors that are not impacted or influenced by the District Plan and council’s infrastructure funding and planning,” it said.

Queenstown Lakes councillors discussed the report at a full council meeting in late October and adopted the report and noted that the key findings of the assessments will help inform council’s future work programmes.

They also noted the requirement to update the district plan with an indication of future development capacity to meet demand, suggesting an additional 930 dwellings in the short term, 6,220 dwellings medium term and 19,200 dwellings long term.

PHOTO: Wānaka App