A housing crunch is on Southland’s horizon as major projects are expected to drive a surge in demand for homes, experts say. The $2.5 billion 513ha Awarua Quadrant project near Invercargill is expected to create thousands of jobs in the lower South Island. The $30 million Aspiring Material green hydrogen plant, announced this month, is tipped to create 200 jobs. Up to 480 jobs are projected at Ngāi Tahu Seafood’s Hananui Aquaculture Project in Foxeaux Strait. And Datagrid’s planned AI data centre at Makarewa is expected to require a workforce of 1200 to build. Real Estate Institute of New Zealand Southland ambassador Wayne Ellis said he was aware “there’s a bit of a storm coming in terms of high demand’’ for housing. “It’s all well and good to start these businesses with a thousand people, [but] where’s the plan to actually house these people?” The proposed major industrial developments could squeeze further the region’s already tight housing market, push up rents and house prices and strain infrastructure if planning did not occur well in advance, he said. “Those companies need to be looking now. “There’s only limited supply, but there’s going to be increase in demand.” Datagrid head of technology Benjamin Black said the company acknowledged 1200 people amounted to “a meaningful percentage of the population” to find housing for. “We have to solve the housing problem. “It is one of the highest priorities in the construction . . . figuring out how we responsibly house that many people in this area. “We’ve got very restricted housing stock at the moment, and there’s no time to build anything.” The company was mindful of the situation and was focused on solutions, “so that it doesn’t harm the community by having this huge influx of people”, Mr Black said. Mr Ellis compared Southland’s present projected industrial growth to the development of the aluminium smelter at Tiwai Point, when housing was built specifically to accommodate workers before demand peaked. He suggested businesses might need to become directly involved in housing solutions to attract and retain staff. “The businesses . . . will need to be looking for what accommodation is available for their workforce. “They may look at actually renting those on behalf of their employees and that may be part of the package.” Mr Ellis said he had already held conversations with builders about developing the city’s housing stock. “The magic bullet is to make sure that all the appropriate partners are actually talking about this and working out a plan,” he said. Southland District Mayor Rob Scott said he recognised pressure on the province’s housing could become significant. “It’s potentially a good complaint to have, but it doesn’t make it an easy one to address. “We’ve got to make sure that it doesn’t have an impact on your day-to-day life in Southland — in terms of driving house prices up and making it hard for the locals to carry on what they’re used to living with.” Spatial planning under way across the district’s community board areas would be crucial in assessing infrastructure needs over the next 30 to 50 years. “Look at what’s happening with Queenstown at the moment. “They’re kind of chasing their tail and having to retrospectively put in the infrastructure to catch up with the housing — you want to do it the other way round in an ideal world,” Mr Scott said. Civic leaders needed to “have a look at the big picture to see how everything all ties together”, including evaluating the needs of incoming construction trades staff and their families who would need access to health services and schools, as well as housing. toni.mcdonald@alliedmedia.co.nz
