This week the Central Otago District Council accepted, in principle, that it has a role to play in affordable housing, and I absolutely agree. 

In fact, I am amazed it has taken this long. 

Affordable housing is the first rung on the ladder for anyone entering the market. 

Much like any other market, there is generally three levels, affordable (entry) level, mid-range, and the top of the market. 

For years real estate has been, rightly so, aiming to capitalise on profits and get the biggest bang for its buck. There is nothing wrong with that. 

However, when a whole generation is priced out of that market it becomes a problem. 

Young people having to stay at home longer, accrue study debt, and hustle for ultra-competitive jobs, have made many people disillusioned. 

I remember a few years ago, when I resigned from a job, by the end of that week my boss had over 2,000 job applications. She randomly chose 30 to shortlist. 

I personally think this mix of hurdles is one of the reasons why suicide is the biggest cause of death for people under 45. 

Research shows millennials (of which I am not) are the worst off generation since The Great Depression, having endured multiple financial downturns and now the COVID-19 pandemic. 

They are also the biggest generation on Earth at this time, and the poorest, living in an increasingly competitive and expensive world.

This is rarely, if ever, included in any kind of conversation when it comes to real estate. 

All of this is interlinked. Are millennials going to inherit everything from their parents, or are they going to rent perpetually for the entire lives from people who own dozens of rental properties? 

One big problem is that Central Otago’s most valuable export isn’t cherries or wine - it is its youth. 

As someone in their early 30s, I moved to Central Otago and was shocked at the almost complete lack of people my age, or between 18-35. 

A big reason for this, I think, is the fact they cannot afford to live here on the wages which are paid here. 

When I moved here I was shocked by how many people asked me “why on Earth did you move here?!”

I would be confused for a moment, then I’d say because its beautiful and I love the place. I then realised it was because I am completely against the general trend of the region. 

Young people are forced to move to a city to study when they finish school, then stay there to get jobs and buy houses. 

Affordable housing will be a major boost in helping keep young people in Central Otago, or attract young families to the district. 

Do they eventually come back to Central Otago? I don’t think so. I haven’t seen that yet. 

Who replaces them? Aucklanders over 45, or Kiwis of retirement age - those who can afford to live here. 

The one interesting impact COVID-19 has had on this area is there has been a rise in under-35s in Central Otago due to many in Queenstown having to come here for work, as our economy is more sustainable than the tourist hotspot. 

A quick glance on social media shows how competitive the rental market is, with people asking for rooms to rent. 

I believe wholeheartedly that affordable housing, with Council’s backing and planning into the future, will mean Central Otago can keep young people here, as well as attract young people and families. 

Those people will bring innovation and energy to the economy. It will also mean the community will be able to build on the back of multiple generations, instead of a turnover of people and families coming in and out. 

I have helped facilitate some of the Central Otago Young Professionals to have their input into the Vincent Spatial Plan and from what I have heard, the Council still has not received enough young voices to put towards the planning. 

I haven’t even mentioned the fact affordable housing is not just for young people, but it is also for single income families and retirement aged people. 

Anyone who struggles with the high market prices right across the country need to have the opportunity to get into the market and have somewhere to call home. 

The short-term boom from construction is a big benefit, as will the jobs provided and apprenticeships to go along with them. 

The long-term boom will be from those people staying, creating businesses and jobs. However there needs to be a strong social development focus to manage the growth sustainably. 

I believe there are way too many people with way too many investment properties, which has created this property bubble. 

From what I hear there are distinct voices to this fact and changes will inevitably come at Council and Government levels. 

Central Otago is a truly outstanding place and young people want to be here, it is just a very hard place for them.

Thankfully that is changing, this Council seems to have an eye for the future, and wants to create a Central Otago where our young people can get their foot on the first step of the ladder. 

This is a step in the right direction for the Council and our district, and I look forward to seeing action.

Photos courtesy Pixabay. 

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