Housing pains and gains

When the stories and pictures first appeared earlier this year, there was a sense of disbelief. As the ugly reality fully emerged, it became a source of national shame.

People in Auckland were reduced to living in overcrowded houses, in garages, shipping containers, tents, and cars, struggling or unable to pay rent, struggling even to find social housing. The effects of the housing crisis in our biggest city were taking a very visible toll.

While not quite at that stage, the South was fast heading there. In Queenstown, young workers were crowding into available rental properties, the average prospective homeowner was being priced out of the real estate market, and there were concerns about social housing as the Government sold off stock nationally and tried to transfer the responsibility to other providers.

The news this week that some people in Cromwell are now living in tents or caravans because of rental unavailability and affordability issues in the town is a further blow.

Cromwell has in some ways become the South's Hamilton or Tauranga. As housing affordability and availability issues push Auckland buyers and renters into satellite towns and cities, so Cromwell is bearing the overflow from Queenstown and even Christchurch as weary post-quake residents there seek an alternative to the slow and frustrating rebuild.

Cromwell's growing pains have been apparent for some time. In many ways it is a positive ''problem'' for the Central Otago town.

The gateway centre to Queenstown and Wanaka has become a destination in its own right and is experiencing solid growth on the back of a booming region. School rolls are rising, there is a building boom, and a palpable buzz.

For average homeowners, the housing demand is a boon. Who doesn't want to see their humble home rising in value? Who doesn't want to see all the hard work paying the mortgage finally reaping potential rewards?

But, as with other centres, rapid growth is problematic for infrastructure. Residential sections are scarce and further development urgently required.

Average rental prices have risen significantly and demand for rental property greatly outweighs supply. There is a critical shortage of seasonal worker accommodation in the area.

There are projects in the pipeline, but speed is of the essence lest the growing pains edge out the gains. For if employees cannot be housed, job-seekers will go elsewhere and vital services and trades will be under strain.

If young families cannot find affordable homes, the district will lack the younger demographic it needs to be sustainable. If speculators take an interest the problem begins to spiral.

And if local and regional councils and communities cannot manage the situation and Government intervention is required, local interests will not necessarily be front and centre of any solutions.

Cromwell must look to our biggest city and its resort neighbour and act quickly to get on top of the problem. If development fails to keep pace with demand, only a wealthy few will win, and the rest lose. This fuels an inequality divide which spreads far further than bricks and mortar.

Thankfully, the Government appears to be backtracking on its state housing policy - including in Queenstown and Mosgiel.

The fact it has not been able to find buyers for its controversial sell-off of housing stock has undoubtedly played a major part in the about-turns in some locations.

But the demand for emergency and social housing is clearly increasing - not decreasing. There needs to be relief for those who have already fallen through the housing cracks.

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