Timaru District delivering ‘more bang for our buck’

With unemployment figures at record lows and businesses struggling to hire staff, new data shows the median household income in the Timaru District is also well below the national median.

Annual median household income as at June was $84,000, $7000 lower than the national figure of $91,000. Unemployment is 2.1 per cent, about half the national average of 4.1 per cent.

Aoraki Development chief executive Nigel Davenport and South Canterbury Chamber of Commerce chief executive Wendy Smith both say the figures do not tell the whole story, but Living Wage South Canterbury secretary Julian Maze believes they highlight an important issue.

Davenport also said the median household income did not always reflect the true picture.

‘‘It’s all relative. The more lowerpaying roles you have in an area the lower the household income, and the more higher paying jobs produce a higher household median income.

‘‘With this in mind, Timaru compares far better with New Plymouth and Napier which are similar types of towns.’’

The chief attraction for potential recruits to Timaru was the value for money and lifestyle, he said.

‘‘When considering pay rates or median income, it is important to consider the variances in living costs across New Zealand and comparative buying power of incomes earned.

‘‘Here we generally get a ‘lot more bang for our buck’, for instance the median house price to median household income multiple is a simplified, yet internationally recognised measure of housing affordability.’’

Davenport said Timaru’s housing affordability multiple was reasonable ‘‘in that the median house price of $325,000 was 3.85 times the median household income of $84,000’’.

‘‘Compare this to the likes of Dunedin 5.79 times and Auckland’s North Shore 9.86 times and you clearly see our housing affordability not only compares very favourably but in general terms our incomes go that bit further.’’

Smith said people choose to live in a region based on reasons that impact them personally such as job and career, affordable housing, great schools and high quality medical services.

‘‘South Canterbury may have on paper a lower median income but offers a lifestyle second to none with a lower cost of living, very low commuting times, great health and education services and easy access to lakes, rivers and bustling cities.

‘‘There are a range of well-paid roles in Timaru with excellent flexible packages and technology now enables the option of living regionally and working nationally and or internationally.’’

Maze said salaries are important in recruiting employees.

‘‘Over 200 years of economic theory says that shortage of supply drives prices up and that has been a cornerstone of the market-driven economy. That is, at present, what we live in. So, shortage of supply can only be solved by paying more for the business essentials.

‘‘However, the mantra for all upper echelon jobs is, and has been for many years, that you have to pay top dollar to get the right person and if there is truth in that then local wage rates have to rise.’’