Govt’s $140 Million Initiative to Deliver 1,500 New Social Homes by 2027

A key element of the strategy involves the establishment of strategic partnerships with five leading Community Housing Providers (CHPs).

The Government is making significant progress in the delivery of 1,500 new social homes as part of the $140 million funding commitment announced in Budget 2024. The initiative, led by Housing Minister Chris Bishop, aims to ensure that these homes are built by June 30, 2027, to address the growing demand for affordable housing in New Zealand.

A key element of the strategy involves the establishment of strategic partnerships with five leading Community Housing Providers (CHPs). This new approach is designed to expedite the construction process and increase efficiency, enabling these providers to manage the development of new social homes more autonomously and effectively.

A Shift Toward Strategic Partnerships

Under the new strategy, these CHPs will take on a significant role in delivering social housing. The Government has already allocated 661 places through Strategic Partnerships, with 393 of these homes having specific addresses identified. The remaining 268 places have been allocated to providers based on their capacity and ability to deliver high-quality homes.

Strategic Partnerships represent a major shift away from the traditional "project-by-project" funding model, which required providers to go through the application and approval process multiple times for each project. This process, known as the "maintaining momentum" pathway, has already led to the approval of 218 social homes.

In contrast, the new model allows for more flexibility and reduces the time providers spend on approvals, enabling them to focus on construction and tenant support. With a more streamlined process in place, the Government hopes to see social homes built at a quicker pace and at a higher quality, meeting the needs of the communities that require them most.

Selected Community Housing Providers

Five CHPs have been selected to lead the delivery of these homes based on their proven track record of managing and developing social housing. The chosen providers include:

• Accessible Properties New Zealand Limited

• Community of Refuge Trust (CORT)

• Emerge Aotearoa Housing Trust

• Te Āhuru Mōwai Limited Partnership

• The Salvation Army

These providers were selected for their strong performance in the sector, demonstrated by the quality of the housing developments they have previously delivered. Their selection ensures that the new homes will meet high standards and be delivered efficiently.

Housing Demand and Location

The new homes will be strategically located to meet the greatest need across the country. Currently, the typology of homes planned includes a mix of one- and two-bedroom units, reflecting the demand for smaller homes. Specifically, 46% of the new places will be one-bedroom homes, while 38% will be two-bedroom units.

In terms of geographical distribution, 23% of the new social homes will be located in the Waikato region, 21% in Auckland, 15% in Nelson, and 14% in the Bay of Plenty. The remaining 27% will be allocated to other priority locations across New Zealand.

Delivery Timeline and Future Commitment

The Government expects the first batch of social homes to be delivered in the first half of 2025, with the pace of construction ramping up over the next few years. All 1,500 homes are set to be completed by June 2027.

“The focus now is on ensuring that we can keep the delivery of social housing on track and that we can meet the needs of individuals and whanau who are waiting for homes,” says Minister Chris Bishop. “By adopting a more reliable, outcome-focused partnership model, we are ensuring that CHPs can deliver social homes faster and more flexibly.”

The Government has indicated that the remainder of the 1,500 homes will be approved in the coming months, and the overall initiative is expected to continue evolving in line with future housing needs and funding availability.

Long-Term Vision for Social Housing

These Strategic Partnerships are intended to be lasting relationships that will evolve over time, adapting to the changing needs of New Zealand’s housing market. The Government believes that this new approach will not only accelerate the delivery of social housing but will also provide a more sustainable and flexible way of addressing the nation’s housing challenges.

As more partnerships are established and additional funding is allocated, the Government is committed to ensuring that more families and individuals will have access to affordable, quality housing in the years to come.