Rotorua CEH Motels Officially Closed as Govt Restores Stability and Dignity

“For years, Rotorua became the poster child of a broken emergency housing system,” said Minister Potaka.

In a significant milestone for New Zealand’s housing policy, the Government has officially ended the use of Contracted Emergency Housing (CEH) motels in Rotorua — a city that had become emblematic of the nation’s emergency housing crisis in recent years. Announced by Associate Housing Minister Tama Potaka, the closure marks the successful rehousing of more than 240 households previously residing in 13 motels.

This achievement fulfills a key Government commitment to shut down all CEH motels in Rotorua by 15 December 2025, a promise made to address deep-rooted social and economic concerns raised by local communities.

“For years, Rotorua became the poster child of a broken emergency housing system,” said Minister Potaka. “Entire stretches of Fenton Street were lined with emergency accommodation motels. Crime surged, families were moved around like luggage, and Rotorua was left to carry the social, economic, and reputational damage of a system that had completely lost control.”

Coordinated, Community-Led Turnaround

The transformation was not accidental. Minister Potaka credited deliberate, coordinated collaboration across community, iwi, and government stakeholders, which ensured every household previously in CEH was moved into permanent, secure housing.

Among the critical partners were:

• Visions of a Helping Hand

• WERA Aotearoa Charitable Trust

• Emerge Aotearoa

• Ngāti Whakaue and Te Arawa iwi

• Restore Rotorua

• Rotorua Lakes Council

• Government agencies such as the Ministry of Social Development (MSD) and Ministry of Housing and Urban Development (HUD)

Referrals into CEH motels ceased on 15 June 2025, with housing providers and support agencies working intensively in the months since to transition residents into sustainable housing.

“Rotorua whānau, businesses and mana whenua had been pleading for change for years. We listened and acted,” said Potaka. “We have restored safety, dignity, and confidence to a city that was forced to absorb the consequences of a failed housing model.”

Impact on Rotorua: Reclaiming Identity and Public Safety

The end of emergency housing on Rotorua’s Fenton Street, once saturated with temporary motel accommodation, represents a broader reset of the city’s social and economic landscape. Residents had long complained about increased crime, declining tourism, and stress on local services linked to the concentration of CEH motels.

With families now safely rehoused and the motels returning to their original commercial and tourism functions, the Government hopes Rotorua will reclaim its reputation as a thriving tourism and cultural destination.

“Rotorua is finally back on the front foot,” Potaka declared. “It is safer, stronger, and open for growth. Our Government will keep backing Rotorua to reclaim its reputation, grow its tourism economy, strengthen its housing supply, and unlock new opportunities for the city.”

Sustainable Housing: From Motels to Homes

This policy shift is not just about ending CEH — it also includes expanding long-term, affordable housing options. The initiative builds on the Whakaue-Government partnership, which is delivering:

• 80 new affordable rental homes at Manawa Gardens (under development)

• Another 80 homes already completed in 2024

These projects are designed to increase Rotorua’s housing supply, reduce reliance on emergency housing, and provide families with warm, secure, and permanent homes. The focus now shifts to ensuring ongoing support services, tenancy stability, and community reintegration for families previously dependent on emergency accommodation.

A Broader Model for Housing Reform?

The Rotorua CEH exit is being viewed as a test case for how the Government may approach emergency housing reform in other parts of New Zealand. Potaka indicated that the policy approach—marked by local collaboration, clear targets, and increased housing supply—may be replicated elsewhere.

While acknowledging there is still work to be done across the country, Potaka emphasized that Rotorua’s story is one of recovery and resilience.

“This progress shows what’s possible when we work together with urgency, empathy, and local knowledge. Rotorua deserves to thrive — and now, it finally can.”