University of Otago rural medical immersion programme director Dr Branko Sijnja said the students had found individual accommodation, but wanted to live together.
The immersion year was an intense experience and worked best when students supported each other. Study commitments continued while the trainee doctors worked in a clinical setting.
In their fifth year of study, the students are encouraged to become part of the community during their stay.
They arrived last month and stay on placement until October.
The students spend about half of their time working in hospital and the rest in general practice.
"They have really tried hard to find places. There's queues for houses ... they have got about six or seven people ahead of them.
"These are trainee doctors. They are older than the average students.
"They certainly are responsible and respectable people.''
Dr Sijnja said the cost of the resort's accommodation was also a problem. The students are not paid a wage while on the programme.
"I think this situation illustrates the problem Queenstown's got,'' he said.
Catalyst Trust chairwoman Cath Gilmour, who is also a district councillor, said the situation highlighted the extent of the Queenstown housing crisis, and many others also struggled to find suitable accommodation.
She hoped new affordable housing projects would start to be initiated under the Special Housing Area designation, but it took time.
