The economy of Queenstown is a major contributor to the economy of the Queenstown Lakes District, although the district covers a much wider area than Queenstown, and includes the towns of
Wānaka to the north-east,
Glenorchy to the north-west and
Kingston to the south.
Housing Residential housing in the Queenstown area is expensive due to factors such as the town being a tourist destination, its lack of land and its desirability to foreigners and investors. Queenstown is rated the least affordable place in New Zealand to buy a property, overtaking
Auckland at the start of 2017. In December 2016 the average house price in the Queenstown area rose to $1 million
NZD. Between 2016 and 2019, average rents in Queenstown rose progressively; reaching 10.8% in 2016, 16% in 2017, and 7.4% in 2018, and 9.6% in 2019.
2018 census data showed 27 percent of Queenstown homes were marked as unoccupied. During the early 2020s, Queenstown experienced a decline in rental housing. Between December 2021 and December 2022, the online auction platform
Trade Me reported a 49% decline in rental listings across the
Queenstown-Lakes District. Similarly, the
Ministry of Business, Innovation and Employment (MBIE) reported that the number of rental houses in the District had dropped by 100 between November 2021 and November 2022. Despite a building boom in 2022,
Stuff reported that 27% of homes in the Lakes District were unoccupied since their owners preferred to use them as holiday homes or short-term accommodation rather than rentals By November 2022,
Radio New Zealand reported that the average home in the Lakes District cost NZ$1.7 million while a three-bedroom rental cost a minimum of NZ$800 per week and a single bedroom rental NZ$500 or more per week. In October 2022,
Environment Minister David Parker confirmed that the New Zealand Government had fast-tracked the Te Pūtahi project at
Lake Hayes Estate to build 748 more homes, a public transport area, and a possible school. By early 2023, Stuff, Radio New Zealand, and
The New Zealand Herald reported that a shortage of rental housing had forced many workers and businesspeople to sleep in cars, couches, tents, visitor hostels, and others to leave the town. In addition, the housing shortage had contributed to a worker shortage among local businesses since they had trouble attracting foreign visa workers or those from outside Queenstown.
Employment The area’s growth rate is one of the fastest in the country with the population growing 7.1% from 2015 to 2016 in a 12-month period. Most jobs in Queenstown are tourism- or accommodation-related. Employment growth was also the highest of any area in New Zealand at 10.3% in the March 2016 year.
Retail Queenstown has a tourist-focused shopping area, centred around the Queenstown Mall. The public pedestrian street opened in 1990, and includes
Reading Cinemas. O'Connells Shopping Centre also opened in 1990, In 1986, Queenstown was granted an exemption to allow shops to open every day of the year except Christmas Day, Easter Sunday and before 12 noon on
Anzac Day (at the time, shops in New Zealand were required to close on Sundays and public holidays). The exemption was extended in 1990 allow shops to open on Easter Sunday. The exemption applies to all shops within a radius of the intersection of Camp Street and Ballarat Street (the location of the Queenstown post office in 1986), and makes Queenstown and the Lake Wakatipu basin one of only three areas in New Zealand where shops may open on
Good Friday (the other two are
Picton and
Paihia). ==Government==