Wellington’s Arlington Reset to Deliver 104 New Social Homes

Kāinga Ora will now prepare a detailed business case for the project, which sits on Wellington City Council-owned land leased to the housing agency under a long-term arrangement.

A major social housing development in central Wellington is moving forward with a smaller and more cost-conscious design, with the Government approving plans for 104 new homes at the Kāinga Ora Arlington site in Mount Cook and up to $6 million for services supporting vulnerable people.

Kāinga Ora will now prepare a detailed business case for the project, which sits on Wellington City Council-owned land leased to the housing agency under a long-term arrangement. Construction is expected to start in 2027, subject to approvals, with completion planned for late 2029.

New Mix of Apartments and Family Homes

The redesigned Arlington development is expected to include 55 one-bedroom apartments, 37 two-bedroom apartments and 12 four-bedroom terrace homes, creating a mix that responds to demand from individuals, smaller households and families needing secure social housing in Wellington.

Housing Minister Chris Bishop said each property would provide a warm, modern home for people who need greater stability, while building social housing in well-located areas remains an important part of responding to New Zealand's housing shortage.

The project requires Wellington City Council to approve a variation to the existing lease before the development can move ahead in its proposed form.

Smaller Project Follows Major Cost Increase

Arlington was previously planned as a 301-apartment development, but that project was paused in July 2023 after estimated costs increased from $296 million in 2021 to $419 million, which would have put the average cost at about $1.4 million for each apartment.

Kāinga Ora has since examined alternatives for the site and developed the 104-home proposal. The estimated price of the new project has not been released for commercial reasons, though the Government expects it to cost significantly less than the earlier design.

Funding is expected to come through Kāinga Ora's renewals programme, which uses proceeds from older state homes that are sold because they are no longer fit for purpose to help pay for newer housing that better suits tenants.

Remaining Land Could Bring More Wellington Homes

Wellington Mayor Andrew Little said the reset could create another housing opportunity because the portion of the Arlington site not required for Kāinga Ora's development would return to Wellington City Council, subject to final council approval. That land could support additional homes delivered by private developers or community housing providers, allowing more housing to be created from a centrally located site.

The Government will also provide up to $6 million to Wellington City Council through its community grants programme for housing services that help vulnerable people find and maintain stable accommodation. The funding recognises that providing a home can work best when people can also access local services that support their wellbeing and help them build greater stability in their everyday lives.