The Ghost Town Trend: How Holiday Homes Are Reshaping Queenstown – and What It Means for Other Tourist Hotspots
Queenstown, New Zealand, famed for its stunning scenery and adventure tourism, is facing a growing crisis: a “hollowing out” of its community. A recent report highlighted a stark reality – a significant number of properties stand empty for much of the year, purchased as holiday homes by those with the means to afford them. This isn’t just a Queenstown problem; it’s a pattern emerging in popular tourist destinations worldwide, raising questions about affordability, community sustainability, and the very future of these once-vibrant towns.
The Numbers Don’t Lie: A Quarter of Queenstown Properties Vacant
Data from the 2023 Census paints a concerning picture. Over a quarter of properties in the Queenstown Lakes District were unoccupied at any given time, with 3,480 dwellings completely empty and another 3,402 listed as “residents away.” This equates to over 6,800 properties effectively taken out of the housing pool, while over 1,600 households are on the waitlist for affordable housing. The situation is exacerbated by soaring property values and rental costs, making it increasingly difficult for local workers to live in the town they serve.
Beyond Queenstown: A Global Phenomenon
Similar trends are visible in other sought-after locations. Consider the Cotswolds in England, where second-home ownership has driven up prices, forcing locals to move away. In Aspen, Colorado, restrictions on short-term rentals are being debated as the town struggles to maintain a workforce. Even closer to home, Australian coastal towns like Byron Bay are grappling with similar issues. The common thread? Desirable locations attracting investment from outside the local community.
Why Are Homes Left Empty? The Economics of Absentee Ownership
Ralph Hanan, a former World Bank senior economist and long-time Queenstown resident, points to the economic realities at play. “It’s not good economics, but it’s reality,” he states. Property owners often find that rental yields are too low to justify the hassle of long-term tenants, especially given the high cost of property ownership and increasingly complex tenancy regulations. Short-term rentals offer a potential solution, but are often restricted by local regulations (like the 90-day limit in Queenstown). For many, simply keeping the property vacant for most of the year is the most financially viable option.
Pro Tip: Before investing in a property in a tourist hotspot, carefully analyze potential rental yields against property costs and local regulations. Consider the long-term implications for the community.
The Impact on Local Workforces and Community Fabric
The consequences of this trend are far-reaching. A shrinking pool of affordable housing forces essential workers – teachers, nurses, hospitality staff – to commute long distances or leave the area altogether. This creates staffing shortages, strains local infrastructure, and erodes the community’s social fabric. Queenstown Mayor John Glover warns that without intervention, the town risks becoming a “trainwreck,” losing its appeal as both a place to live and a destination for visitors.
Potential Solutions: From Taxes to Zoning Regulations
Addressing this issue requires a multi-faceted approach. Several potential solutions are being discussed:
- Capital Gains Tax: Mayor Glover suggests a capital gains tax on second homes could disincentivize speculative investment and encourage owners to rent out their properties.
- Zoning Regulations: Implementing local ownership clauses in new developments, prioritizing housing for residents who intend to live in the properties year-round.
- Increased Affordable Housing Supply: Scaling up community housing trusts and requiring developers to contribute to affordable housing schemes. Simplicity’s planned 600-home development in Queenstown is a positive step.
- Review of Short-Term Rental Regulations: Finding a balance between allowing tourism and ensuring sufficient long-term rental stock.
The Role of Government and Policy
While individual property owners bear some responsibility, systemic change requires government intervention. Policies that encourage long-term rentals, disincentivize speculative investment, and prioritize affordable housing are crucial. This may involve revisiting tax laws, reforming zoning regulations, and providing financial incentives for developers to build affordable housing.
Did you know?
The term “ghost town” traditionally referred to abandoned mining settlements. Now, it’s increasingly being used to describe thriving tourist destinations hollowed out by absentee ownership.
Looking Ahead: A Sustainable Future for Tourist Towns
The Queenstown situation serves as a cautionary tale for other tourist hotspots. Ignoring the issue of absentee ownership risks transforming vibrant communities into exclusive enclaves for the wealthy, ultimately undermining the very qualities that make them desirable in the first place. A sustainable future requires a commitment to balancing economic growth with social equity, ensuring that these towns remain places where people can live, work, and thrive – not just visit.
Frequently Asked Questions (FAQ)
Q: Is this problem unique to Queenstown?
A: No, it’s a growing trend in many popular tourist destinations worldwide, including the Cotswolds, Aspen, and Byron Bay.
Q: What is a capital gains tax?
A: A tax on the profit made from the sale of an asset, such as a property. Applying this to second homes could discourage speculative investment.
Q: What can be done to increase the supply of affordable housing?
A: Scaling up community housing trusts, requiring developer contributions, and reforming zoning regulations are all potential solutions.
Q: Why don’t property owners just rent out their homes?
A: Rental yields may be too low to justify the costs and hassle, especially with complex tenancy regulations.
Want to learn more about affordable housing initiatives? Visit the U.S. Department of Housing and Urban Development website for resources and information.
Share your thoughts! What solutions do you think would be most effective in addressing the issue of absentee ownership in tourist towns? Leave a comment below.
