Economic Insights

How the Kāpiti Coast District is tracking

June 2022

Inflation is high (7.3% over the past 12 months), which is why net consumer spending activity has fallen during the June 2022 quarter. Compared to the rest of New Zealand however, the Kāpiti Coast is doing rather well.​

​On the Kāpiti Coast, GDP grew steadily at 3.2% over the year to June 2022 compared to a national growth of 0.9%. GDP stands at $2,419M (provisionally) in June 22, compared to $2,344M in June 21. During the June quarter however, consumer spending and domestic tourism waned compared to the June quarter in 2021, causing the June 2022 quarter GDP to be 3.1% less than it was a year ago (growth was $563M during the June 22 quarter, compared to $581M during the June 21 quarter).​

​Tourism expenditure is down 0.9%pa since June 2021, however comparing this to the national average decline of 6.6%pa, we see the district has done well to retain domestic tourism.​

Key Quarterly Indicators

From the June 2022 Infometrics Quarterly Economic Monitor report.

Gross domestic product growth (provisional)​

• GDP in Kapiti Coast District was provisionally up 3.2% for the year to June 2022, compared to a year earlier.​

• Growth was higher than in New Zealand (0.9%). Provisional GDP was​ $2,419 million in Kapiti Coast District for the year to June 2022 (2021 prices).​

• Annual GDP growth in Kapiti Coast District peaked at 8.5% in the year to December 2021.

Unemployment Rate

• The annual average unemployment rate in Kapiti Coast District was 2.3% in the year to June 2022, down from 3.8% in the previous 12 months.

• In the year to June 2022, the annual average unemployment rate in Kapiti Coast District was lower than in New Zealand (3.3%).​

• Over the last ten years, the annual average unemployment rate in Kapiti Coast District reached a peak of 6.7% in Mar 2013 (starting it's downward spiral).​

Tourism Expenditure

• Total tourism expenditure in Kapiti Coast District decreased by 0.9% in the year to June 2022, compared to a year earlier. This compares with a decrease of 6.6% in New Zealand.​

• Total tourism expenditure was approximately $107 million in Kapiti Coast District during the year to June 2022, which was down from $108 million a year ago.

Guest Nights

• Total guest nights in Kāpiti Coast District decreased by 6.1% in the year to June 2022, compared to a year earlier. This compares with a decrease of 19.0% in New Zealand.

• Visitors stayed a total of 94,100 nights in Kāpiti Coast District during the year to June 2022, which was down from 100,200 a year ago.

Traffic Flow

• Traffic flows in Kapiti Coast District decreased by 6.3% over the year to June 2022, compared to a year earlier. This compares with a decrease of 10.4% in New Zealand. 
• Disruptions to travel caused by higher levels of sickness will have contributed to the decline. The major driver of lower traffic activity is likely the considerable rise in fuel prices, alongside generally high inflation, which limited household budgets to travel around as much.

House Prices

• The average current house value in Kapiti Coast District was up 6.2% in June 2022, compared to a year earlier. Growth was lower than in New Zealand (9.6%).
• The average current house value was $945,695 in Kapiti Coast District in June 2022. This compares with $1,009,662 in New Zealand.
• At a national level, annual house price growth dipped below 10%pa for the first time in nearly two years in June 2022, a substantial slowdown from above 30%pa growth recorded in late 2021. A combination of rising interest rates, high inflation, and lower affordability after the strong price gains in the last two years means that buyers’ ability to pay has been limited, making sales harder to progress. A fear of overpaying is also weighing on sales, meaning that the average time to sell a property is up 45%pa in June
  as sellers are forced to accept lower prices to clear a sale.