A critical Fiordland housing shortage is affecting local businesses, employees and limiting growth of the region's economy, according to a survey conducted in November (2023) by the Fiordland Business Association (FBA).

Seventy-one local businesses responded to the FBA survey, with 56% identifying housing as a significant problem impacting their business operations.

More than half of the respondents also reported being understaffed by between one to five people due to the scarcity of housing options in Te Anau.

FBA chair, Nathan Benfell, said the findings underscored the urgent need for strategic solutions to address the housing crisis.

"It was imperative to address this housing crisis head on."

"Locals will tell you; this problem isn’t new, and it also isn’t going away.”

"It is impacting businesses, hindering employment opportunities, and ultimately limiting the growth of the region."

"We now have a responsibility to drive collaboration on strategic and practical initiatives, fast," Benfell said.

"The survey results indicate a clear desire among employers to invest in worker accommodation, but financial constraints within many family businesses are a significant hurdle," he said.

"We urge the Government and our Local Authorities to consider providing backing to businesses willing to invest in housing solutions."

"This not only benefits employers but contributes to the overall economic growth of the region", Benfell said.

“The Fiordland Business Association is committed to working with all stakeholders to find viable solutions to the housing crisis here."

"We’re looking at what other local authorities like Buller District Council are doing as temporary accommodation."

"We’ve connected with a developer from Wanaka and a local landowner who are keen to be part of a local solution."

"And we’re researching modular, prefab and tiny housing options. But we’d still love to get more solution focused individuals and organisations around the table,” Benfell said.

Other issues raised in the survey included:

• Concerns about unregulated short-term rentals, with any respondents expressed concerns about the number of local properties used for AirBnB, suggesting that proper regulation by local councils or government legislation could help level the playing field and encourage longer-term rentals.
• The need for a variety of accommodation types, addressing the requirements of singles, families, and both seasonal and full-time workers.
• Suggested employer-led solutions, including businesses buying and renovating properties to provide employee accommodation, creating dedicated worker housing, and exploring options like tiny homes or trailer parks for workers.
• The broader impacts of the housing shortage, including limitations on new investment, overworking local staff, limited-service delivery and people moving away.