Impact of the cost of living crisis on Wellingtonians
The Wellington City Mission (the Mission) has been a cornerstone of support for communities in the Wellington region since 1904. Celebrating its 120th anniversary in 2024, the Mission continues to empower and transform lives by providing holistic support in various areas, including housing, social supermarkets, and community services. We have partnered with the Mission to highlight the growing social and economic challenges faced by Wellingtonians due to the ongoing cost of living crisis. This crisis significantly impacts community services, including those provided by the Mission. This research is part of our commitment to supporting the Mission's vision of a fair, just, and caring community where everyone can thrive.
Since mid-2021, households in Aotearoa New Zealand have faced rapidly increasing prices for essentials such as food and housing
These increases have outstripped wage growth, leading to a cost-of-living crisis where many households struggle to meet their basic needs. Community organisations like the Mission have seen a significant increase in demand for their services, with more individuals and families needing additional support. The Catalytic Foundation’s 2023 Community Needs Survey revealed that 96 percent of community organisations reported their communities were impacted by cost-of-living increases, and 98 percent saw an increase in demand for their services.
Community organisations have not been immune to inflation
Operating costs, including staff wages, utilities, rent, food, and other materials, have grown rapidly. The Community Network Aotearoa’s 2024 State of the Sector Survey found that 64 percent of community organisations reported financial stress due to rising costs. Many organisations struggled to maintain staff, with some forced to increase wages or reduce staff numbers to cope. The Catalytic survey showed that 91 percent of respondents’ organisations had needs they could not resource, and 62 percent could not resource their operational costs.
Housing and food prices in New Zealand have increased rapidly since the COVID-19 pandemic
House and rental prices have been growing at unprecedented rates, making housing unaffordable for many. The number of people on the social housing register has increased significantly, with 93 percent classified as having a “Priority A” housing need. In the Wellington region, demand for smaller houses (one- or two-bedroom homes) is particularly high. Wellington City has the highest demand for one-bedroom houses in the region, with 588 people on the register for such homes.
Food prices have also increased significantly since the onset of the COVID-19 pandemic. The New Zealand Food Network reported a 165 percent increase in the number of people receiving food support. Food prices in the Wellington region increased by 23 percent between March 2020 and March 2024.
The prevailing economic conditions have had a real and growing negative impact on communities, particularly for the most vulnerable
Economic conditions continue to deteriorate, with unemployment increasing and a growing number of people requiring social assistance. The need for community organisations like the Wellington City Mission has never been clearer. This report highlights the importance of ongoing support for these organisations to ensure they can continue to provide essential services to those in need.