Tuesday 4 September 2018

Local economy exceeds $900 million mark

The value of the Horowhenua economy has exceeded $900 million and is on track to exceed $1 billion in a few years’ time.

Horowhenua District Council Economic Development Manager Shanon Grainger said economic growth in Horowhenua remains strong at 3.9% and is well above both the regional and national growth rates.

The statistics were released as part of the Horowhenua Quarterly Economic update for the year ending 31 May 2018, which is produced by Infometrics.

Mr Grainger said there are five other significant statistics in the report that will resonate with our community. These are:

• Unemployment is trending higher, and we now have the fifth-highest unemployment level in New Zealand at 8%.

• House values are up 15%, and the average house price is now $300,000 as our market becomes more closely aligned to the Wellington property market.

• There has been a 9.7% increase in rents, which equates to tenants paying an extra $25 a week than they were paying in the year prior.

• Residential consents were up 9.8%, with 246 new homes collectively valued at $78.2 million consented in the year, including a monthly record of 46 consented homes in May this year.

• More people are moving to Horowhenua, including 188 international migrants in the past two years.

Mr Grainger said it was great to see the number of builds keeping up with the estimated minimum of 244 new homes that will be required every year for the next 20 years.

“Many are small homes for retirees and those living on their own, as there is a strong demand for these properties. However, there is a clear lack of new family homes and subdivisions to accommodate them, and this needs to change if we’re to strengthen our overall fabric of our community, our schools and our support networks across the District,” he said.

Mr Grainger acknowledged the Ministry of Social Development’s recent announcement that 30 more state houses will be built in the district in the next few years.

“It’s a small investment in our growing district and the homes will make a lifetime of difference for those who live there. However, that investment will not address the increasing home affordability rates which are now back up to where they were before the Global Financial Crisis,” he warned.

Mr Grainger said a disappointing but not unexpected statistic is the significant drop in non-residential building consents.

“Thankfully it appears to be a dip rather than a trend, as several large and significant commercial projects are in the planning stages,” Mr Grainger said.

You can find out more details of the report’s findings here: www.horowhenua.govt.nz/files/assets/public/business/horowhenua-qeu-september-2018.pdf

ENDS

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