Cromwell Backpackers owner Darren Fox says he is struggling to offer people affordable housing, after his landlord increased his lease by $9000 a year.

Speaking in the public forum of the Cromwell Community Board yesterday, Darren said the shortage of housing in the town was getting worse, and there were always people who resorted to living in their car.

Now faced with having to put up his prices so he was not out of pocket, he questioned whether land could be opened up at the racecourse, and turned into a camping ground.

The shortage of housing has been a problem across Central Otago, and Cromwell, in particular, for many years.

But, some of the current short term options around Cromwell, such as The Chalets and Cairnmuir Camping Ground, were now being earmarked for bigger developments over the next few years.

He warned members that if they did not do something soon, the town would just end up like Queenstown.

“The gap needs to be filled now,” he told the meeting.

Board members agreed more conversations should be had, and to address what the true needs of the community were.

Cromwell Backpackers owner Darren Fox has raised his concerns around affordable housing in the town. PHOTO: Supplied

When contacted by the Central App after the meeting, Darren said he was also losing money by letting people stay at his backpackers for longer periods, “but hey, they need somewhere to live.”

He said some of these people worked at the council themselves and were struggling to find long term accommodation.

Operating the hostel for the past seven years, he said he often has to turn people away over the Christmas period, because many of the beds were taken up with seasonal workers.

Listen to more here.Podcast