Population growth presents 'once in a lifetime opportunity'

The Horizons Regional Council area is experiencing the highest growth in population since the 90s. Photo: SUPPLIED

Districts under the banner of Horizons Regional Council are experiencing a population boom, with the highest numbers reported in more than 25 years.

The area, which includes Horowhenua, Manawatu, Palmerston North, Tararua, Rangitikei and Whanganui, is now home to 236,900 people.

This is the highest on record since the 1990s.

Central Economic Development Agency chief executive Linda Stewart said it was now important the region capitalised on this growth.

"We have a once in a lifetime opportunity to strengthen the wider economy so that we can obtain sustainable growth, that provides opportunities for families across the central North Island for generations to come."

She said government agencies needed to consider this growth when forecasting for things such as public infrastructure, and the region was already showing signs of a skills shortage in construction, IT, distribution and logistics.

"The increased work comes as our employment participation catches up with national averages. Alongside this, our house values are increasing as are rents.

"We can expect this to continue as our population grows. We should be cognisant of the effect on residents, and it would be timely for renewed look at social housing if we are to improve the lives of people across the spectrum."

The Regional Economic Report states factors driving the population increase include a rise in net migration by 19 per cent. The Rangitikei, Ruapehu and Whanganui have moved from a net loss of overseas migration of 366 in the year ending June 2013, to a net gain of 304 in the year to June 2017.

There are also less people leaving the region for Australia, with figures dropping from 1629 in the year to June 2000, to just 899 in the year to June 2017.

Fonterra's farmgate payout, which rose from $3.90 in the 2015/16 season to $6.15 this season, has also benefited the economy. There is also strong gains to be made from beef, sheep and skins despite a high Kiwi dollar.

Palmerston North City Council Economic Policy analyst Peter Crawford cited the 917 consents for new houses in the year to June 2017, compared to just 421 two years prior.

"Continuing strong growth in house prices and rents will continue to support strong growth in housing construction in the region."

Non-residential contracts were weaker for the past year however, Mr Crawford said several major projects were being approved this year. These include the New Zealand Defence Force's $469 million capital investment, an investment of $150 million in growth and security projects and renewal programmes by PowerCo, planned spending of $282 million by the Midcentral District Health Board and national roading investments.

Accelerate25 Lead Team facilitator Michael McCartney said the results of the report were satisfying.

"All the indicators are showing that further progress will occur in the years ahead so, we should see an end to the decline in our rural townships."

To view the latest report visit www.pncc.govt.nz.