The head of a Queenstown rental agency says the shortage of accommodation for workers in the resort town is the worst he's seen in 20 years.

Craig Dow is the general manager of the Queenstown Accommodation Centre which manages 530 long term rental properties.

On Tuesday the agency had just six properties advertised on its website, ranging in price from $420 per week for a two bedroom cottage to $1300 for a six bedroom house.



"It's very, very tough at the moment and I don't think people understand how bad the shortage is.

"Rents are on the up because there's nothing around and owners know they can get top dollar. Short of a large high density residential development being given the green light and starting immediately, I don't see it getting any better any time soon.

"It's particularly tough for people who are not New Zealanders, and just arrive in town without any credit history we can check or references from landlords, because owners make a decision based on that."

Frankton Motor Camp manager Tracey O'Rourke gets about a dozen enquiries a week from people wanting long term camping sites, but until the peak of the holiday period passes she is only prepared to rent on a week to week basis.


Current guests include three overseas workers and a group that are between flats. "They've been here about three weeks."

Last year O'Rourke set aside about a dozen camp sites for workers who spent up to three months living in tents or vans before it got too cold, and expects to take the same number this year once she has the space.

"Most of them are foreigners that are here for the season. They pay $120 per person a week."

"We've had people turn up and say, 'Have you got anywhere for us to stay? We start a new job on Monday.' We say 'You've put the cart before the horse.' It's a real shame because there's plenty of opportunity for employment with new businesses opening up."

Staff accommodation is a big issue for Queenstown's hospitality industry, according to Penny Clark, general manager of the Goldridge Hotel and the regional chair of the Tourism Industry Association.

The first question she asks prospective employees is whether they have somewhere to live.

"Somebody in our restaurant has a room on his own that's costing him $300 a week. People are renting out garages – it's not that they are just trying to make money, it's because people are so desperate, and at this time of year, it's not so cold."

Part of the problem was that many of the 700 airbnb rooms available in Queenstown were previously longer term rental properties, Clark said.

"I've got a staff member that's been kicked out of his house on New Year's Eve because the owners could get more on airbnb."

Dow said companies bringing staff in to work on big building contracts were having to consider accommodating them nearby in towns such as Cromwell and Kingston.

"I get calls from large contractors almost daily wanting to know if there's anywhere for their staff to stay. There's quite a few that commute from Cromwell every day, it's only a 35 to 40 minute drive."

Dow predicts the housing squeeze has the potential to deteriorate further when the next ski season arrives because camping in tents won't be an option.

"If people think it's bad now, it will be a lot worse in May and June."