The lack of rental accommodation in Central Otago may be undermining the district’s economic potential as some families can’t put a roof over their heads.

Cromwell accommodation complex operator Bill Sanders said his 17 units are fully tenanted all year round, and there is always demand around Cromwell and surrounds.

“I know of one working family being made homeless by their landlord on New Year’s Eve,” he said.

“Try as they might, they can’t find a roof to put over their heads. They have two little ones. That’s the reality of the market people find themselves in,” he said.

“I have a one-room coming free; I can’t put a family of four into one unit. I’m no slum lord. It’s got to the stage that they’re talking about moving into a tent.” 

Bill said developers must take the initiative and get more dwellings and worker accommodation under construction and “get the job done”.

“I’m hearing as many as 150 families are looking for housing in the Central Otago District,” he said.

Legislative changes have put people off becoming landlords

Real estate agent Peter Hishon believes a combination of conditions has created a dramatic shortage in the rental accommodation sector. 

“Recent changes in tenancy and tax legislation over the last couple of years have scared people away from the prospect of becoming landlords,” he said.

“Property investment used to be seen as a safe and dependable option for New Zealanders. People are now thinking twice before committing life savings to investment properties.”

Peter said there is also a shortage of new properties coming onto the market. 

“Whatever the reason, we’re facing a difficult situation. 

“I’m hearing feedback from employers who find the right staff in skilled positions but find there is insufficient accommodation. It must be affecting economic outcomes for Central Otago.”

Alexandra Clyde and Districts Business Group secretary Stuart Millis agrees. He said the group’s members are dealing with a shortage of skilled workers and a critical accommodation shortage.

“How can the district expect to move forward economically when we simply can’t guarantee the provision of accommodation for skilled workers and their families,” he said.

Employers face “a critical accommodation shortage”

This is the first of a series of articles the Central App will be running on this topic. Contact [email protected] if you have a view to share on this critical issue.