Despite the economic challenges presented over the last two quarters, Horowhenua’s economy is showing clear signs of bounce back with Infometrics provisional estimates showing a 1.5% increase in GDP compared with the same quarter in 2019. Although, GDP has declined slightly by 1.1% over the previous year compared with a -3.3% national downturn.
Source: Infometrics Horowhenua District Quarterly Economic Monitor 2020-09
Local spending has increased by 6.3% compared to a national decline of 2.7%, which may be attributed to more Horowhenua locals Working From Home (WFH) and less commuting to the capital.
The effects of the COVID-19 pandemic continue to have an impact on the local employment market - although not as much as the national average - with a 14% increase in Job Seeker Support recipients in Horowhenua compared to a national growth of 27%.
Contrary to post-lockdown predictions, Horowhenua’s housing market continues to be red-hot. Horowhenua has seen housing demand skyrocket with the average house price increasing by 17% over the past twelve months and jumping almost $12,000 since last quarter to $432,850.
Residential Building Consents have also dropped below 50 for the first-time since 2017, compared to a quarterly average of around 70 over the last three years. Although Residential Consents have decreased, the Non-Residential Consents are still performing well with $20m issued to September 2020.
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