The latest Queenstown Lakes labour market snapshot report, commissioned by Queenstown Lakes District Council (QLDC), confirms the housing rental supply is shrinking but unearths no clear root cause.

Economist and report author Benje Patterson found that while rental listings have fallen sharply, new construction has outpaced population growth, and short-term rental listings have dropped. 

“The report tells us that while building houses is an important piece of the puzzle, building more will not solve the problem alone,” QLDC mayor Glyn Lewers said. 

“We must tackle this from many angles and in partnership with those who can help our community realise sustained change in the makeup of our housing market, and that’s what we’re focused on.”

Data taken from Ministry of Business, Innovation and Employment rental bonds show close to 100 fewer rental homes available in November 2022 compared to November 2021. 

Benje added that data obtained from Trade Me Property also showed a 49 percent drop in rental listings in the district from December 2021 to December 2022.

Building consent numbers that show the rate of construction in the district over recent years should be more than enough to keep up with population growth, with about 1,081 more homes consented last year than were needed to meet population growth demands.

Despite a recent increase in the number of short-term stay accommodation listings in Queenstown Lakes, listing numbers remain lower than before the Covid-19 pandemic. 

Accounting for new housing stock and new short-stay accommodation listings, data suggest about 649 new houses were built above and beyond the needs of both population growth and short-term stay demand.

“The question we don’t have a certain answer to is, what are these new houses being used for?” Benje said. 

“It is likely many are unoccupied and have been constructed as holiday dwellings or homes to retire to in future.”

Employers are concerned

Ignite Wānaka (the town’s chamber of commerce) chair Glenn Peat said many local businesses are struggling to recruit staff based on the lack of housing.

“Employers are concerned and it is a topic we as a chamber are advocating for,” he said, adding that low rental availability combined with staff being required in all sectors adds to the concern.

“There is certainly no quick fix for this, however there needs to be some action and initiatives put forward rather than continuing to talk about this challenge.”

Almost three quarters of respondents to a recent Queenstown Business Chamber of Commerce survey said the availability of accommodation for staff is more than just a minor issue for their business.

One in three said the housing situation represents their biggest barrier to achieving optimal staffing levels right now.

For the families who call Wānaka home, the impacts of the shortages can be devastating. 

Landa Mendonca and her husband will move to Dunedin in the next few weeks if they cannot find a rental, after an eight-month search during which the family of five has shared a single bedroom in a relative’s house

They are reluctant to leave their jobs, or pull their children from the schools they love.

Read Landa’s story here.

“Housing lies at the heart of building secure, connected and caring communities, in turn creating jobs and a diverse economy,” QLDC planning and development general manager Tony Avery said. 

“The Queenstown Lakes currently has well-documented issues with housing supply and affordability which continue to create barriers for many folk who wish to call the district home.

“These are people that local businesses desperately need.”

Read the full report here.

PHOTO: Wānaka App