Waiheke Island faces housing strain as new rules welcome digital nomads
Residents of Waiheke Island are expressing concern that new governmental regulations designed to accommodate digital nomads could exacerbate the local housing crisis.
Critics fear that the rules, which allow visitors to work remotely for a foreign employer for up to nine months, will attract a wave of wealthy, short-term residents who could outcompete locals for the limited available housing.
Housing market under pressure
Damian Sycamore, general manager of the Waiheke Community Housing Trust, highlighted the severity of the situation.
“The housing situation on Waiheke is pretty dire, so we have the most upside down income-to-rent ratio in the country, even worse than Queenstown,” Sycamore told RNZ.
With more than 1,000 bed and breakfast accommodations making up nearly 20% of the island’s dwellings, the rental market is particularly strained.
Impact of digital nomads
The influx of digital nomads, who have been increasingly prevalent since 2020, poses a significant threat, according to Sycamore.
“We know they have stacks of cash and get paid big bickies whilst they're travelling internationally, but they will be able to outbid Waiheke's low incomes for a dwindling pool of houses that are available to rent,” he said.
The concern is that these high-earning workers will further destabilise the already fragile housing market, pushing long-term residents to the margins.
Community reaction
Kylee Matthews, deputy chairwoman of the Waiheke local board, noted widespread anxiety within the community.
“There's a lot of people that are already concerned on our Facebook page, our community notice board, where they just say, ‘here we go again, long-term residents are going to get pushed out by short-term nomads,’” Matthews told RNZ.
Expert insights
While Kelvin Davidson (pictured above), a senior property economist at CoreLogic, doesn’t believe the new rules will significantly impact New Zealand’s broader property market, he acknowledged that areas like Waiheke could see notable effects.
“There's always going to be some local impacts...I suspect Waiheke Island would be on that list,” Davidson said.
Rental challenges
Paul Brisbane, co-owner of Waiheke Homes real estate firm, elaborated on the rental challenges locals face.
“There are people who are finding it tough to get rental property on Waiheke for that kind of period,” Brisbane told RNZ, referring to the medium-term rental market, which typically lasts about six months.
The arrival of digital nomads could intensify competition for these rentals, making it even harder for long-term residents to find stable housing.
Looking ahead
The community remains apprehensive about the potential increase in popularity of the short-term rental model and its impact on the island's long-term livability.
“Island residents and locals, they don’t want to just exist in a space for less than a year. They want to build a home,” Sycamore told RNZ.
