Queenstown, New Zealand

At just 16,000 residents, Queenstown is a resort town on the edge of Lake Wakatipu - and it's also one of the least affordable places in New Zealand. Housing prices and rents have skyrocketed, forcing many workers to sleep in cars or leave town entirely. And with a boil water notice recently issued due to a cryptosporidium outbreak, the local government's infrastructure struggles to keep up. Still, the town's mountain and lake scenery continue to draw in tourists and investors seeking adventure tourism and ski resorts. Queenstown is best suited for well-heeled visitors and retirees, not those seeking an affordable place to live and work.