Research done by Sense Partners shows that Wellington City Council’s Te Kainga programme has wide reaching economic benefits and will likely increase retail spend in the central city.

Research showed that savings made on things like transport by residents in the Te Kainga programme can be redistributed back into retail spending in the city. Sense Partners estimate that when the programme achieves 1,000 units this would equate to $857,700 per annum of additional retail spend.

Additionally, a survey was carried out of the existing tenants which noted 18% were new to the city and it was estimated these new city residents would generate a retail spend of $10,130 per person per year. When the programme achieves 1,000 units this could therefore generate $3.6m per annum of new retail spend in Wellington.

“Te Kainga is an example of how Council intervention has not only increased the supply of affordable rental housing but also brings with it a raft of positive impacts to the central city more widely,” says Mayor Tory Whanau.

The report also highlighted the wider economic benefits across transport cost savings, agglomeration benefits (access to employees), infrastructure cost savings, transport emissions reductions and construction emissions reductions to an estimated annual benefit of $3,972 per person.

“Bringing people into the city, instead of building to push them further out has a hugely positive impact on not only infrastructure costs, but also on our environment and local businesses.

“What this tells us is that when people can live closer to where infrastructure, amenities, businesses, jobs and communities already exist it helps our city thrive, and we need to keep doing more of it.”

“Our District Plan will also greatly expand the potential for more housing in Wellington. This, combined with positive signals from central government to enable more housing, means we can build an affordable, vibrant, and resilient city” says Mayor Whanau.

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