Queenstown’s job market is booming, but the town’s soaring cost of living is pushing workers out almost as fast as they arrive. Recruiters and unions say staff shortages are worsening not because of a lack of jobs, but because everyday expenses make it impossible for many workers to stay long-term.
The reality is illustrated by café worker Orla Marshall, who returned to Queenstown only by living in a van after finding rent unaffordable the previous winter. Even when she secured a room in a shared flat for $220 a week — below the local average — high heating costs swallowed much of her pay.
“We didn’t find Queenstown to have higher wages, just higher prices,” she said, pointing to food, fuel, and household costs that all carry what workers describe as a “Queenstown premium.”
According to data cited by Radio New Zealand , hospitality workers in Queenstown earn an average of $28.51 an hour — only slightly higher than the national rate. Across all sectors, the average annual income in the district sits around $69,788, roughly 12 percent below the New Zealand average.
At the same time, Queenstown Lakes District has become the most expensive rental market in the country. Average weekly rent is about $707, compared with $573 nationwide. Rents now take more than 27 percent of the average renter’s income — the least affordable level recorded since 2000.
Unite Union says the numbers simply do not stack up. In some cases, hospitality workers earning the minimum wage of $23.50 an hour are paying $300 to $400 a week just for a single room. Once food, petrol, parking, and utilities are added, many workers are going backwards financially.
In recent years, some workers resorted to sleeping in cars, tents, hostels, or couch surfing due to housing shortages. Now, unions and recruiters say many are choosing to leave altogether, relocating to cheaper regions or moving to Australia, where higher wages and better affordability are drawing workers away.
Recruiters describe Queenstown as a “high churn” economy. Jobs are filled quickly, but staff turnover is extreme. Workers often quit within weeks after realising they cannot save money — or even cover basic costs — despite full-time work.
While Queenstown continues to attract wealthy tourists, luxury developments, and record visitor spending, critics warn the town risks becoming unliveable for the people who keep it running. Without higher wages, more affordable housing, or targeted worker support, the gap between Queenstown’s economic success and workers’ lived reality is likely to widen further.
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