MP for Invercargill Sarah Dowie said the number of emergency housing special needs grants and benefit advances handed out has skyrocketed in Invercargill.
Ministry of Social Development’s figures for the September 2019 quarter show 250 people called on the Invercargill Work and Income Centre for assistance.
This is up from 46 at the same time in 2017.
"That amounted to the taxpayer forking out $156,000, a 370% increase."
The number of benefit advances given out in the city — which is a one-off payment to help pay an essential bill or emergency cost — painted a similar picture.
"[It issued] 972 grants at a cost of $389,000 in September 2017, MSD’s most recent figures show this has ballooned out to $568,000."
Habitat for Humanity Invercargill general manager Paul Searancke said finding affordable accommodation remained a challenge.
Since June last year, the organisation has managed The Grand hotel accommodation in Invercargill which provided accommodation for 500 homeless people a month.
He said on the night of December 30 alone, 24 people were staying there as they did not have anywhere to go.
"We started due to a community need and it hasn’t stopped. For a city of this size it is particularly bad."
Mr Searancke said the organisation helped 117 people find a home last year.
People arrived stressed and emotional as they did not have somewhere to sleep, he said.
"We give them the chance to them take a breath ... Feel safe while they work to find permanent accommodation."
Southland Housing Action Forum chairman Shaun Drylie said the rental and property markets were also difficult.
"It’s been hard to find quality properties. You can find just a few for rent ... and the price of houses to buy also increased about 15 to 18% on average last year."
Mr Drylie and Mr Searancke agreed this year [2020] the housing sector would have even more challenges with the construction of The Langlands Hotel and the inner-city block development.
"Don’t get me wrong. I don’t have a problem with the developments but where will the contractors go? I don’t know," Mr Searancke said.
A site in Kew Bowl area had been bought by Habitat for Humanity Invercargill on behalf of the Southland Housing Action Forum to address — in part — the issues of housing shortage.
Between 20 and 30 houses would be built at the site, in a mix of affordable, elderly, rental and ownership houses. They believed the project would not be completed this year.
"It will depend on funding but I hope at least we can have the stage one under way — this means we would have some houses on the ground."
Another hope came from a developer who called Mr Drylie couple of months ago.
He said it was good to see investors interested in Southland.
"He was talking about a big development which could provide 100 houses to the region. It’s great to see investors more confident in Southland. We hope continues that way."
