The New Zealand government will be allocating $140 million to build 1,500 new social housing units from July 2025, according to Housing Ministers Chris Bishop and Tama Potaka. This funding, part of Budget 2024, will be used by Community Housing Providers to help families currently living in emergency housing or with relatives to move into more stable accommodation.
The decision to repurpose funds from first home grants to community housing is a difficult but necessary move to address the country’s social housing shortage, as the current waitlist is over 25,000 applicants. The ministers made the announcement during a visit to Dwell Housing Trust’s social housing development in Kilbirnie, which is an example of the kind of project that will be eligible for this new funding.
The Ministry of Housing and Urban Development will oversee the allocation of the new homes, which will be contracted over the next 12-18 months due to construction time. Around 500 of these homes will be assigned quickly using existing projects, with the aim of providing value for money, reducing the use of emergency housing, and supporting underserved regions.
The remaining 1,000 homes will likely be assigned using an “active purchaser” approach, which involves a more detailed understanding of current and future housing needs at different levels. This approach, subject to ministerial approval, could lead to long-term partnerships with Community Housing Providers to achieve specific social and housing outcomes. The Ministry of Housing and Urban Development will provide revised criteria for the 500 homes to Community Housing Providers by 30 June 2024.
