Wellington just approved a controversial high-rise development, betting on a growing city. But the tax data tells a different story: Wellington's economy has stalled.

The region's total taxable income hit $3.9 billion in 2024 — technically up from $3.7 billion in 2020. That's a 4.8% increase over four years. (Source: Stats NZ (LEED), taxable-income-sources)

Here's the problem: inflation over that same period ran at roughly 20-25%. Which means in real terms — in what that money can actually buy — Wellington workers are earning less than they were before COVID.

Even more striking: taxable income in Wellington was identical in 2023 and 2024 — $3.87 billion both years, a difference of just $900. Zero nominal growth. In an inflationary environment, that's a pay cut.

This is the tension at the heart of Wellington right now. The city is planning for growth — approving towers, debating infrastructure, arguing about urban density. But the economic engine that's supposed to fund all of it has gone flat.

Compare Wellington to the rest of New Zealand. Between 2020 and 2024, the country's total taxable income grew faster than Wellington's in most regions. The capital — historically the steady, public-sector-anchored economy — is now lagging.

Part of this is the government workforce. Public sector hiring froze, then reversed. Departments that spent the 2010s expanding are now cutting roles. That flows through to every café, every law firm, every consultancy that depends on those workers.

But it's also about what high interest rates and flat wage growth do to a regional economy. Less spending. Less movement. Less of everything that makes taxable income grow.

The high-rise development will add apartments, sure. But who's moving to Wellington for work when the taxable income data shows the city's economy standing still? The numbers and the planning are pointing in opposite directions.

These are nominal figures — not adjusted for inflation — which makes the flatline even more concerning. In real purchasing power, Wellington's 2024 income is significantly below where it was in 2022. The city isn't just stalling. It's going backwards.