The local economy Hastings District, New Zealand, is experiencing strong growth, which is reflected in declining unemployment and growth in median household incomes. Climate and relatively lower costs mean Hawke’s Bay is increasingly attractive for firms and households relocating from other parts of New Zealand, and population growth has significantly exceeded optimistic projections. This has contributed to increased competition for housing, leading to increasing prices and rents. the horticulture industry is expanding significantly (and projected to continue doing so). There is a high reliance on seasonal workers, including through the Recognised Seasonal Employer scheme, which is placing pressure on housing.

Construction of new housing has been focused on larger homes at the top end of the market, reflecting increasing land and construction costs. This is consistent with a national trend over the past two decades. Hastings District Council and HUD estimate that to meet current housing needs, there is a shortage of around 300 to 500 affordable houses (with a high proportion of those needing to be 1-2 bedroom). This does not take into account projected continuing population growth. Increasing competition for housing has led to poor housing affordability and availability for households on lower incomes.

This is reflected in the high demand for emergency, transitional, and public housing, and also in high rates of overcrowding. In some cases, these households also have other characteristics which mean they are less attractive to private landlords (for example gang membership, poor credit history or not being in employment). Where households wish to live together across multiple generations, affordability and availability of larger housing are also a challenge.