No rentals in Coast boom town
A small West Coast town is having something of a renaissance – but good luck finding a place to live.
Reefton’s economic boom has increased demand on the already strained housing market, with one property investor saying the accommodation shortage will be a ‘‘crisis’’ within a year.
Buller District councillor and property investor John Bougen, who cofounded Dress Smart and once travelled to 191 countries in 150 days, said the town of 920 people had zero rentals available and very few for sale.
Yet the workforce was on the rise. Federation Mining, which has been working on the Snowy River Gold Mine near Reefton since September last year with the help of a $15 million Government loan, is expected to take on 100 more staff by 2024.
As many as 40 staff and contractors with two other mining companies exploring and drilling were looking for accommodation in the town, Bougen said. One of the companies had even bought an old backpackers lodge to accommodate staff.
‘‘The companies bringing people in want stable staff, so that means families.’’
To help meet the demand, Bougen has been giving historic buildings a new lease on life, converting them into accommodation. Bougen, as part of a syndicate of property investors, bought a motel to convert into longer-term accommodation. He said he had the means and the land available and just needed a builder to come and help build more houses.
Since moving to Reefton in 2015, Bougen has been involved in the restoration of about 40 different historic buildings and has rented out about 20 new homes in the past two months.
One of his most recent projects, to help address the accommodation shortage in town, was to convert the old Reefton school into four furnished apartments. It took four months – using local contractors and Buller-sourced materials – and they were already fully tenanted, he said.
There are 20 listings for accommodation available in Reefton on Airbnb, and on Trade Me there were 12 houses for sale and none to rent.
Development West Coast chief executive Heath Milne said Reefton was one of New Zealand’s post-Covid success stories.
Spending data from MarketView showed the town had a 40% increase in visitor spending, jumping from $5.1m in pre-Covid 2019 to $7.2m in 2021, despite closed international borders.
‘‘Unlike many other heritage towns across New Zealand, Reefton hasn’t put all its eggs in one basket. It isn’t relying just on tourism,’’ Milne said.
Tourism, mining, the dairy industry, and the service sector were all contributing to ensure economic growth for the town of 920 people, he said.
According to data from Infometrics, Reefton’s gross domestic product had risen from $39.4m in 2019 to $54.1m in 2021 – with a $10.2m increase in economic activity from mining alone. ‘‘Reefton has become an incredibly attractive place – not just for visitors, but for new residents looking for a better work-life balance.’’
Federation Mining spokesperson Simon Delander said it was employing 47 workers. That would increase to more than 110, subject to resource consent approval to move into production in 2024.
‘‘A high percentage of our employees live on the West Coast. We are looking to employ local people and for those moving to the Coast to join the project we are encouraging them to bring their families which is also good for the community, schools and the economy,’’ he said.
Sourcing housing was difficult in town so it had partnered with a local business that built accommodation for its technical staff that Federation could lease. It had been talking to the council about its future plans and staffing needs.
‘‘We are not the [only] company that will need to house our staff. There are two other companies exploring Reefton right now so are happy to be part of the collective ultimate solution to build the Reefton housing inventory, which will be a great outcome for Federation along with local business and the community.’’
‘‘Unlike many other heritage towns across New Zealand, Reefton hasn’t put all its eggs in one basket. It isn’t relying just on tourism.’’ Heath Milne Development West Coast chief executive