Executive summary

Hamilton is the thriving heart of the region and an integral part of the golden triangle between Auckland and Tauranga. With a population of 178,500 it is New Zealand’s fourth largest city and has a growth rate higher than Auckland, Christchurch and Wellington over the last three years. Hamilton has a diverse economy which helped it weather the pandemic better than New Zealand’s other major cities.

2021 was another big year for growth in Hamilton, with continued growth in population, housing stock and economy, while dealing with the ongoing challenges and uncertainty of the COVID-19 pandemic. 2021’s highlights for Hamilton include:

• A record 1497 new homes were completed - up 6% on 2020.

• A 12% increase in the number of homes under construction.

• Hamilton made up 41% of Waikato’s $30 billion Gross Domestic Product (GDP) and 43% of its jobs.

• Hamilton’s GDP was $12 billion increasing 4.3% since 2019 despite the pandemic, and for the first time supports over 100,000 jobs.

• Unemployment declined to 4.8%.

• Council submitted a proposal to the

Infrastructure Acceleration Fund based on its $334 million expression of interest for the central city.

• Hamilton ranked first in New Zealand and 21st in the world for its successful integration of digital technology, knowledge and assets to improve city services.

• Median house prices increased by 20% which includes increases of 19% for standalone houses, 14% for flats and units, and 10% for sections.

• Consents were granted for 79,000m2 of new commercial and industrial development.

• Hamilton’s annual population growth - 0.9% - outpaced other major cities and New

Zealand as a whole.

• The central city continued to grow with numerous developments underway and population growth of 5.8%.

There were challenges in 2021, most of which were the result of the global pandemic and not isolated to Hamilton.

These included:

• Consumer price inflation increased 5.9% in the

December 2021 quarter.

• Inflation and booming property prices led the Reserve Bank of New Zealand (RBNZ) discontinue it monetary stimulus from mid2021 and increase the Official Cash Rate from 0.25% to 0.75% by the end of 2021.

• Mortgage rates nearly doubled in the space of 12 months, increasing pressure on household budgets and discretionary spending.

• The tight labour market meant that despite an increase of 33% in job advertisements in

Waikato, the number of applications per job was down 39%.

• The hospitality and accommodation sector saw nearly $31 million less in spending and nonretail businesses like hairdressers and book retailers saw a drop of $33 million.

• Supply chain disruptions caused delays across many areas including construction.

Hamilton is one of the fastest growing cities in New Zealand with a diverse economy worth $12 billion in 2021.

Significant global economic influences that emerged in 2022 include:

• Russian invasion of Ukraine and its effects on the New Zealand economy such as petrol prices hitting $3.12 following the invasion as well as further supply chain and shipping disruptions.

• China’s ongoing zero-COVID policy has seen its major cities locked down and resulted in further port disruptions which will inevitably prolong supply chain issues.

• New COVID-19 variants appear to be less severe, reducing the economic and social impacts of the virus and enabling economies and borders to reopen.