99 New Social Homes Coming to Top of the South as Govt Expands Housing Push
Housing Minister Chris Bishop says the move reflects a strong commitment to “building the right homes, in the right places, with the right support, for the people most in need.”
- Country:
- New Zealand
The Government has announced that 99 new social homes will be delivered across the Nelson, Marlborough, and Tasman regions as part of an ongoing partnership between the Ministry of Housing and Urban Development (HUD) and Community Housing Providers (CHPs). Housing Minister Chris Bishop says the move reflects a strong commitment to “building the right homes, in the right places, with the right support, for the people most in need.”
The homes, which will be developed primarily by The Salvation Army and supported by other CHPs such as the Christchurch Methodist Mission, are part of a wider nationwide expansion of community-led housing initiatives.
Addressing Urgent Housing Needs in the Top of the South
According to the Ministry’s regional data, 87 percent of applicants on the social housing register in the Nelson, Marlborough, and Tasman regions are waiting for one- or two-bedroom homes—a category where the supply gap is most critical.
To address this, all 99 homes under the new programme will feature one or two bedrooms, catering specifically to individuals, couples, and small families. Locations confirmed so far include Nelson City, Blenheim, and Richmond, with additional sites being evaluated based on infrastructure readiness and proximity to services.
Four homes have already been completed in Blenheim, built by the Christchurch Methodist Mission. The majority of the remaining homes—over 80 dwellings—will be delivered by The Salvation Army through 2027, working with construction partners of their choosing.
“This is about matching the type of homes we build to the people who need them most,” said Minister Bishop. “Half of those waiting for a home nationally need a one-bedroom property, yet only about 12 percent of Kāinga Ora’s stock meets that need. This investment directly targets that imbalance.”
Strong Partnership Between Government and CHPs
The initiative demonstrates a shift toward a mixed-delivery housing model, where the government partners more actively with community and non-profit housing organisations rather than relying solely on Kāinga Ora.
Since November 2023, CHPs and Kāinga Ora have collectively delivered over 6,800 net new social homes across New Zealand, with 170 of those located in Nelson, Marlborough, and Tasman. The Government has also committed to funding an additional 2,000 homes through CHPs nationwide over the next two years.
The allocation of these homes has been guided by HUD’s regional needs assessments, which factor in the housing register, emergency housing demand, and local cost-of-living indicators.
Simplifying Funding and Cutting Costs for Providers
Minister Bishop noted that the Government’s “reset” of the social housing system is already producing results. A key milestone was the A+ credit rating awarded to the Community Housing Funding Agency (CHFA) by S&P Global, signalling investor confidence and enabling lower-cost borrowing for CHPs.
In addition, the new loan guarantee scheme announced earlier this year will further reduce borrowing costs and support faster project delivery. “By lowering financial barriers, we’re helping community providers get on with building homes, not filling out endless paperwork,” Bishop said.
HUD is also streamlining funding channels by merging overlapping grant programmes and simplifying eligibility criteria. This is expected to cut red tape, shorten approval timelines, and allow CHPs to focus resources directly on construction.
Long-Term Vision for Community Housing
The expansion in the top of the South aligns with the Government’s long-term plan to diversify social housing delivery. Rather than relying exclusively on state-owned housing, officials are increasingly turning to CHPs that can leverage community networks and local partnerships.
The Salvation Army, for example, has a strong presence in Nelson and Marlborough, operating both housing and social support services. Its ability to integrate housing assistance with wraparound support—such as budgeting, employment help, and addiction services—makes it a vital partner in ensuring sustained housing outcomes.
“This isn’t just about bricks and mortar,” Bishop said. “It’s about creating stability and opportunity. Every set of keys handed over represents another family or individual gaining security and hope.”
Boosting Regional Economies Through Construction
The new housing projects are expected to provide an economic boost to local construction industries, with opportunities for regional builders, tradespeople, and suppliers. HUD has committed to prioritising local contractors wherever feasible, ensuring that investment stays within the communities it’s intended to help.
Housing sector analysts say that the combined effect of the CHP expansion and government-backed loan guarantees could also create spillover benefits, such as stabilising rental markets and easing pressure on emergency housing services in regions like Nelson and Blenheim.
Community Response and Next Steps
Local councils and community groups have largely welcomed the announcement, noting that the region has faced persistent housing shortages for years. Nelson City Council data shows that median rents have risen nearly 25 percent over the past four years, outpacing wage growth.
While many stakeholders applaud the government’s investment, some have called for additional funding for support services—such as mental health, addiction recovery, and employment programmes—to accompany the new housing stock.
HUD expects the first major tranche of new homes (around 40 units) to be completed by mid-2026, with all 99 homes delivered by late 2027.
A Step Toward a Fairer Housing Future
With more than 25,000 households on the national housing register, the Government’s renewed focus on CHPs and smarter funding tools marks a significant policy shift. It signals a move away from purely state-led construction toward a collaborative ecosystem that empowers community groups.
“The progress in Nelson, Marlborough, and Tasman shows what can be achieved when the government and community providers pull in the same direction,” Bishop concluded. “We’re delivering not just more homes—but better ones, where they’re needed most.”
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