The housing shortage is not helped by having 1000 properties listed as Airbnbs. Photo: Crux Publishing Ltd
Queenstown's deputy mayor says the district needs help from government to solve its housing crisis.
About 70 people attended a protest in Queenstown last night to demand action on housing. They shared stories about unaffordable housing forcing them to live in vehicles, tents, or sleep on friends' couches.
MetService has issued a heavy snow watch for the Queenstown Lakes and Central Otago for today with the temperature reaching 5C by 9am although feeling more like 1C, according to its website.
Deputy Mayor Quentin Smith told Morning Report it was not unusual for weather warnings to be issued for the region and it had not been too problematic so far.
He said the housing crisis was particularly serious in Queenstown because it has some of the highest property prices in the country and very high demand for short-term tourist accommodation combined with a relatively low wage economy centred on tourism.
"It creates a bit of a perfect storm - the low wages, high [priced] rentals and low availability."
He used the example of an average house in the Shotover Country subdivision that could charge a weekly rent of $1300.
"For an average wage or a minimum wage that's an unbelievable amount of money."
He agreed Airbnbs were helping to drive the shortage of rental properties as well as high rents.
More than 1000 properties in the town were listed as Airbnbs.
He said the council was looking at some options but did not know how to fix homelessness.
Years ago the council had "high ambitions" of trying to regulate the number of Airbnbs through the District Plan process but a recent declaration from the Environment Court had "watered down" what the council was trying to do.
In 2017, the Queenstown Lakes District Council sought to significantly restrict the number of days houses could be used for residential visitor accommodation, including Airbnb, to 28 days a year.
But the council's proposed district plan which included the stricter rules hit hurdles when the majority of submissions and submitter evidence pushed for less restrictive rules at a hearing panel.
Last month, an Environment Court decision confirmed residential visitor accommodation now includes the letting of any building established as a residential unit, regardless of whether it is being used for residential activity or solely as a commercial venture for guests.
"We didn't achieve what we set out to from that process. We're looking to other options and we need support from the government to do that," Smith said.
However, the council did not have any answers at present and there was no doubt government help was required, he said.
The Queenstown Community Housing Trust was doing some great work in providing some housing but had a waiting list of 800-900.
A new development in Arrowtown would provide 66 affordable houses.
"There is some really great work being done but it certainly doesn't come close to meeting the problem."
"It creates a bit of a perfect storm" - Queenstown Deputy Mayor Quentin Smith
Southland's National party MP Joseph Mooney said talking to Queenstown residents protesting the rental housing crisis has helped him understand how critical the situation is.
Mooney who attended last night's protest meeting said there was no simple fix to the housing crisis, but it needed to be addressed.
"There's the long-term issue that we need to address in terms of building enough housing supply to keep up with our population growth; then there's the immediate issues on how to ensure people can have somewhere stable and more comfortable to live in."
Meeting organiser Hannah Sullivan says last night's protest was only the start, and central government needs to step in before the rental housing crisis gets even worse.