Emergency Housing Motels Closed in Rotorua as Govt Rehouses Final Families

Mr Potaka said the previous approach trapped whānau in unstable living conditions and placed significant pressure on local services and businesses.

The Government has officially ended the use of contracted emergency housing motels in Rotorua, closing a chapter that local leaders say caused long-term social, economic and reputational harm to the city. Associate Housing Minister Tama Potaka described the move as a decisive break from a system that failed both vulnerable families and the wider Rotorua community.

For several years, Rotorua became one of the country’s most concentrated locations for emergency housing, with motels used extensively to accommodate people experiencing homelessness. Many families, including those with children, were placed in temporary accommodation for prolonged periods, often without clear pathways into permanent housing.

Mr Potaka said the previous approach trapped whānau in unstable living conditions and placed significant pressure on local services and businesses. He said the Government committed to delivering meaningful change by shifting people out of emergency accommodation and into secure, long-term homes.

Since taking office, the Government has reduced the national number of people in emergency housing by 85 percent, with Rotorua a major focus of that effort. Referrals into contracted emergency housing motels in the city stopped on 15 June 2025, after which agencies worked intensively with remaining residents to secure permanent housing solutions.

With the final whānau rehoused last month, all contracted motels are now transitioning back to normal commercial operations, including tourism and short-term accommodation. The closure marks the complete end of emergency housing motels in Rotorua.

Mr Potaka said the change positions Rotorua to move forward with renewed confidence. He highlighted the city’s global reputation for its natural landscapes, Māori culture, geothermal attractions and tourism sector, saying the end of emergency housing motels supports broader goals to strengthen housing supply, grow the local economy and unlock new development opportunities.

He also acknowledged the sustained efforts of local businesses, iwi leaders and civic organisations who had raised concerns about the impacts of emergency housing for many years and advocated for long-term solutions.

Rotorua MP Todd McClay said delivering on the Government’s election promise was a major moment for the city and its residents. He said the widespread use of emergency housing motels had placed unfair burdens on the local community and damaged Rotorua’s reputation as a place to live, work and visit.

According to Mr McClay, families who were previously living in motels are now in proper homes, providing greater stability and better outcomes for children. He said the closure represents a fresh start for Rotorua and a turning point for community wellbeing.

“This is the end of homeless motels,” Mr McClay said, adding that Rotorua is now reclaiming its vibrancy and sense of pride.

The Government has signalled it will continue focusing on preventing long-term reliance on emergency housing by expanding housing supply, strengthening support services, and ensuring emergency accommodation is used only as a short-term, last-resort option.