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Released Date

Tuesday 24 August 2021

Published by

Infometrics

Economic Development Update 

A variety of indicators relative to the national economy show economic recovery in the Horowhenua since the COVID-19 shock last year. In the June 2021 year, GDP is up by 3.5%, according to Infometrics provisional estimates. This is an unexpectedly strong result given the June 2020 numbers. This shows that the local economy is faring better now than pre-pandemic levels.

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Source: Infometrics Horowhenua District Quarterly Economic Monitor March 2021

The local growth in GDP is emulated in the rise of consumer spending which is also up 3.5%, which is mostly evident within the Tourism industry that is up by 11.7% in the June 2021 quarter. This is still sitting well below national growth at 7.7%. We see tourism spending bringing $75m into the Horowhenua economy, similar to pre-pandemic levels.

The number of Horowhenua residents in employment grew in the June 2021 year enhancing our local labour market by 1.5%. This is well above the national numbers which were negative. Although the Jobseeker Support recipient numbers peaked at 1,947 in December 2020, these are back down to 1,839 in the June 2021 quarter. This quarter, we were very close to the 10 year low with our local unemployment rate at 5.5%.

Escalating house prices in Horowhenua are concerning, with the average house value in the district sitting at $606,000, a 35% increase in the year to June. This is inching closer to the national housing affordability values, which means affordability of housing in Horowhenua is declining.

Residential consents hit a historic high of 97 in the June quarter, nearly double the 10 year average, a natural reaction to rising house prices in the district. Whereas non-residential consents are sitting a little below the 10 year average at $12m in the June quarter.  

Residential consents hit a historic high of 97 in the June quarter, nearly double the 10 year average, a natural reaction to rising house prices in the district. Whereas non-residential consents are sitting a little below the 10 year average at $12m in the June quarter.  

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