The 'Wānaka Tax': Lifestyle comes at a cost

A recent survey says residents between Wānaka and Queenstown are happy with their quality of life, despite growing pressures such as the cost of living, rental crisis and growing mortgages.

The survey conducted by the council itself does have quite a flaw, given it is voluntary and likely done by those who have the luxury of time, and not bogged down by the pressures above.

Of the 2300 respondents, 76% rated their quality of life as ‘‘good or better’’, an increase of 4% from 2023.

That’s good news, and if you look around, there is little to complain about with the natural beauty, safety and lifestyle the district offers.

However, there is a price point for residents on this lifestyle, and that’s the "Wānaka tax" — a higher cost of living than the national average. This isn’t just house prices, but the more covert costs that sneak up on you such as the cost of groceries and fuel, compared with most other parts of the country.

A speed dial around the New World supermarkets in the South and I found that in buying just nine items, my bill was nearly $7 higher in Wānaka's town centre in comparision to Dunedin central. Winton and Gore were both $5 cheaper than here also.

A loaf of bread, 2 litres of milk, tomatoes, an eggplant, a frozen chicken, toilet paper, kumara, oranges and peanut butter totalled $59.47.

That $7 may seem miniscule, but if you visit three or four times a week that soon adds up to $21, $28 more than our neighbouring towns. This can be a lot for a family paying an average Wānaka rental price of between $825 and $880. Invercargill’s is $495.

Fuel was worse. In Dunedin, Gore and Mataura I’d be paying $2.62 a litre this week for 91 and $2.85 for 95 premium (or $2.79 in Winton), in Wānaka on the same Tuesday morning prices were set at $2.81 for 91 and $3.01 for 95 at BP and Caltex in Wānaka.

Local service stations have said the price hike is due to being so far inland from ports and the freight charges, but Winton is as far from Dunedin ports. Fuel retailers set the prices themselves, as do the supermarkets.

Of the respondents whose quality of life had decreased in the survey, 57% reported these prices as a main reason.

The number of people reporting that they had no disposable income increased over the last year from 21% to 29%. This is considerably higher than any other result dating back to the survey’s inception in 2018.

On the jobs front, the number of residents that agree there is opportunity for career advancement in the district dropped to 38%.

Mayor Glyn Lewers acknowledged the challenging times the area faces, with these price points making it harder for the average person and family to live and work here.

"These are challenging times with affordability issues and the growing pains that come with ongoing rapid growth, so to see so many in our community feeling good about their quality of life is heartening."

The survey results showed that affordability, housing, and infrastructure continued to be the district’s primary challenges.

The median house price in Wānaka is $2.057 million, up 3.9% on last year.

While housing issues remain a concern, there were improvements on the year before. Residents worried about having a steady place to live decreased from 21% in 2023 to 18% last year, and those who had experienced insecure accommodation reduced from 10% to 5%.

Lewers said the council was addressing the higher prices in the area through the district’s economic diversification plan. The plan sets out how local organisations will collaborate to diversify the district’s economy and create more tertiary training and professional development opportunities.

To address housing issues, QLDC is working closely with Queenstown Lakes Community Housing Trust and central government on mid-to-long term solutions set out in the district’s joint housing action plan.

Other key issues affecting residents included access to medical professionals, public transport, and the impact of the district’s rapid growth.

Residents reporting no barriers to accessing medical professionals decreased from 39% last year to 37%, and is down from 47% in 2020.

Only 14% of respondents agreed that public transport met their needs.

olivia.caldwell@alliedpress.co.nz