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Kāinga Ora is proposing to deliver 104 new state homes at its Arlington development in the heart of Wellington, boosting social housing in the city centre.
The revised plan responds to demand for both one‑bedroom and larger family homes in central Wellington and includes:
- 55 one‑bedroom and 37 two‑bedroom apartments in a seven‑storey building
- 12 four‑bedroom terrace homes
- A community room for residents
The plan depends on Wellington City Council approving a variation to our existing lease on the land. The Council expects to consider this in late September following a public consultation process. It is also subject to the approval of a detailed investment case by the Kāinga Ora Board and Ministers and the necessary building and resource consents.
Should these be approved, construction is expected to begin in late 2027 and finish in late 2029. The development will be funded through the Kāinga Ora renewals programme, which reinvests proceeds from the sale of older homes into new and improved social housing.
We are unable to release the estimated cost of the proposed new development. Once approved, we will run a competitive tender process to select a contractor so it would be inappropriate for us to release expected costs until after that process is complete. However, we can confirm that we are expecting it to cost significantly less than the original project. This will be reconfirmed through the detailed investment case to ensure the proposal is sound and affordable.
The following Q&A provides the background to the Arlington development and further information on the revised plan and next steps.
When did Kāinga Ora acquire the Arlington site and what were the original plans?
In 2019, Kāinga Ora (then Housing New Zealand) signed an agreement with Wellington City Council to lease the Arlington site for 125 years at a cost of $1 million and to deliver at least 230 social, affordable and supported homes. The agreement became active in 2020.
In October 2021, the Kāinga Ora Board approved plans for 301 social housing units on the site at a cost of $296 million.
What made you rethink that plan?
The Arlington project was paused in 2023 when escalating construction costs made the original proposal financially unfeasible. Under the initial plan, each home would have cost more than $1 million to build.
Why has it taken so long to develop a revised plan?
Several options for the site were explored to ensure investment represented value for money while still delivering social housing in central Wellington. The revised plan balances these objectives.
What work has already been done on the site?
The former housing complex has been demolished, and civil works have been completed to prepare the site for development. This included complex decontamination work, service connections, and piled foundations for one building.
These foundations will be reused for the new Kāinga Ora building, subject to planning and building consents. The works completed to date will also enable construction to begin sooner.
Kāinga Ora will only develop part of the site. What will happen to the rest?
Kāinga Ora will work with Wellington City Council on options for the remaining land. This may create opportunities for housing to be developed by private developers, community housing providers or affordable housing providers.
How will the development be funded?
Kāinga Ora is undertaking the most significant upgrade of its older homes ever seen in New Zealand. This includes selling some older homes that are no longer suitable for social housing and reinvesting the proceeds into new homes that are warmer, drier, the right size and in the right locations. The Arlington development will be funded through this approach, with no additional funding required.
How much has been spent on the Arlington development to date?
The total spend on the earlier project was $50.1 million (GST inclusive), covering design work, construction, professional fees and associated development costs. Additional costs have been incurred in developing the revised plans. We are unable to release this information as it is commercially sensitive.
Kāinga Ora will build on foundations laid for the previous project, while other completed site works means it is development-ready. Works already completed that can be incorporated into the revised design equate to $10.9 million. The remaining expenditure will be written off.
The revised plan is a forward‑looking proposal to deliver 104 homes at a significantly lower per‑home cost than the previous plans for the site, while making use of foundations and site works already completed.
Is Kāinga Ora confident the project can be delivered within budget?
Current cost estimates have been tested by experts and will be reconfirmed through a detailed business case for approval by the Kāinga Ora Board and Ministers. It’s expected to be presented to Ministers in early 2027.
We will use a standardised cost-efficient apartment design, which will help to reduce overall build costs and ensure we deliver the proposed project on budget.
Who will live in the Arlington development?
Kāinga Ora allocates homes to people on the Ministry of Social Development social housing register, carefully matching households to available properties based on their needs, including location requirements and the most appropriate housing typology.
For more information
Improving the quality of our older homes through renovation and replacement
We’re undertaking the most significant upgrade of our state houses ever undertaken in this country:
- Over the next 30 years, we'll extensively renovate or replace more than half of our 78,000 homes to provide better quality social housing for New Zealanders in need.
- We’ll do this by:
- Significantly renovating homes that are in the right locations, adding at least 50 years to their lifespan as part of our retrofit programme;
- Removing unsuitable, ageing homes and replacing them with new, modern, warm and healthy homes on the same land;
- Selling some properties and replacing them with new homes that are the right size and in the right locations.
- Our tenants will benefit from warmer, drier and healthier homes that better suit their needs now, and in the future.
- We’re a prudent property owner – as we improve the quality of our homes they will be less costly to maintain.
- This is setting us up for the future and creating a strong social housing legacy in Aotearoa – we’ll have modern homes that are the right size and in the right places.
Why is Kāinga Ora focussing on renewing its housing portfolio?
Around half our homes are at least 40 years old. Many are nearing the end of their life as social housing, are costly to maintain and no longer suit our tenants’ needs.
Some of our homes are on under-utilised land or in locations that are not close to the amenities our tenants need. Our tenants’ needs are changing and demographics are shifting so we need to change our housing portfolio to suit.
This is an opportunity to provide better quality housing that is the right size and in the right locations.
We are setting up our housing portfolio for current and future demand, whether it’s larger family homes for whānau or one-bedroom homes for smaller households. Our new and renovated homes will be close to employment, schools and the amenities our tenants need to live well now, and in the future.
Is Kāinga Ora building any new homes?
Yes, we continue to build and purchase new homes as we replace older properties that are no longer suitable for social housing. In fact, over the next few years we are planning to deliver about 2000 new or significantly renovated homes each year.
How many homes are you planning to renew in total?
Over the next few years, we’re planning to extensively significantly renovate or replace around 2,000 older homes each year. By 2030, we’re aiming to significantly improve approximately 11,500 homes in this way.
Our long-term goal is to renovate or replace around 40,000 older homes – about half our housing stock – within the next 30 years.
How many homes are you planning to sell?
We’re aiming to sell around 900-1000 homes each year for the next few years. It’s important to note that for every home we sell, we reinvest the proceeds into another new home elsewhere, so we are not reducing the number of state houses we have overall.
How many renewals have been completed in the past year?
In the 2024/25 financial year, we delivered 3,456 new homes and completed significant renovations on 874 homes under our retrofit programme.
Read more about our latest quarterly performance
If you are no longer adding to your housing stock, how will people from the housing register get
into homes?
It’s important to note that Kāinga Ora is only one of a number of social housing providers throughout the country.
We continue to house people from the Ministry of Social Development social housing register and have placed nearly 12,000 individuals into homes across the country since July 2024 - an average of 795 people per month.
We’re consistently exceeding our target of having 98% of our lettable homes tenanted and, as we improve the quality of our homes, fewer will be out of service for major repairs.
Selling properties that are no longer suitable for social housing allows us to reinvest in the quality of our homes overall, with proceeds from these sales used to build new homes that are warmer and drier, the right size, and in the right locations.
We’re not reducing the number of Kāinga Ora homes. For each existing Kāinga Ora home sold, a newly built home is delivered elsewhere. This may not occur immediately as we will often sell or demolish the old home before the new one is delivered, therefore we will still see fluctuations in our housing stock numbers over time.
How do you decide whether to renovate or replace older homes?
When we assess options to improve the quality of our older homes, we take into account a range of factors, including their age and condition, location, demand for social housing in the area, the amenities and services nearby and whether the land can be redeveloped.
Typically, we renovate older homes if they are close to the services and support our tenants need and if the land property is unsuitable for redevelopment.
If an older home is close to amenities, and it is possible to increase the number of homes on the same land, replacing the home with several new homes may be a good option. We may decide to sell an older home and replace it with a new home elsewhere if it is no longer suitable for social housing, costly to maintain and isn’t close to the amenities our tenants need.
Why have some Kāinga Ora tenants been living in old, unsuitable homes until now? Don’t your homes meet Healthy Homes standards?
Almost all Kāinga Ora homes (99.8%) meet Healthy Homes standards. All older homes are checked to make sure they comply with the standards before they are let to a new tenant.
Although our homes meet these standards, around half are currently at least 40 years old, nearing the end of their life as social housing and are costly to maintain.
As a responsible asset manager, we’re focussed on improving or replacing these ageing homes as we recognise the importance of our tenants living in warm, dry and healthy homes.
If you’ve already completed Healthy Homes and retrofit work on some homes, why does more work need to be done?
Over recent years, we’ve worked hard to bring almost all our homes up to Healthy Homes standards. We’ve also carried out extensive renovations on around 3,300 homes (about 4% of our housing stock) since our retrofit programme began in 2018.
While almost all our homes meet Healthy Homes Standards and thousands have been renovated, almost half of our homes are still more than 40 years old, with many becoming increasingly costly to maintain and no longer suitable for social housing.
To address this, we’re now undertaking the largest upgrade of our housing portfolio ever seen in New Zealand — replacing older homes with modern, high-quality ones, or extensively renovating more homes through our retrofit programme to extend their life by up to 50 years.
Where do tenants go if their house is sold/under redevelopment/being renovated?
We recognise that it can be challenging for some tenants to leave their home. We are committed to supporting our tenants through this process, which includes moving them to another Kāinga Ora home that suits their needs.
What land are you selling?
We currently plan to sell about 36 hectares of land that is no longer needed for either new social housing projects or for urban development work. That includes:
- 4.5 hectares of land in Alfriston, which the New Zealand Transport Agency is going to acquire for a roading project.
- Larger sites that were acquired with the intention of delivering a mix of both market and social housing, including:
- 80 Don McKinnon Drive, Albany, Auckland
- East Street, Drury, Auckland
- 98-110 New North Road, Auckland
- 46 Mangere Road, Auckland
- 18 Totara Avenue, Auckland
- 132 Adelaide Road, Wellington. Note, this site is separate from the site at 28 Adelaide Road purchased under the Land Programme.
- Smaller vacant sites across the country which are not needed for social housing projects.
The remainder of the vacant land we own, we’ll hold onto for future development and renewal of our housing stock. It makes sense to do this, rather than selling it and needing to buy land again in the future.
Can you provide a list of the smaller sites that you intend to sell?
To ensure fairness and a level playing field in an open market selling process, we don’t usually share information about specific sites until the property is ready for sale. It is possible some sites currently earmarked for sale may need to be reconsidered so the list of sites we’re selling could evolve.
When will you start listing the sites on the market?
About 4.5 hectares of Kāinga Ora owned land is already on the market or in the process of being put on the market. We'll begin listing other sites for sale over the next 12 to 18 months. We want to get the best price possible for the land so the exact timing of when we will list sites for sale will depend on market conditions and other variables that could impact on price. For example, with some larger sites we may look to subdivide before we sell to maximise their value.
How will the land be sold?
Generally, as sites are confirmed for sale, they will be listed and sold on the open market by an appointed real estate agent. Larger development sites may require different sale approaches.
As sites are put on the market, we will share details on our website.
How much of the land being listed for sale is zoned for housing?
Most of the land earmarked for sale is zoned for housing. Where land isn’t already zoned for housing, we might look to get it rezoned before putting it on the market.
How much do you expect to earn through land sales?
The land currently earmarked for sale has a book value of about $132 million, but the price we get for it will depend on market conditions and what buyers are willing to pay for it.
Will you offer any of the land to Community Housing Providers?
The land will generally be sold through open market processes. Community Housing Providers are welcome to express interest through this process.
Is it possible that other land will be sold in the future?
Like any developer, we are continually reviewing the land we own to see if it still fit for purpose and as such, it is expected that the divestment of sites will be an ongoing process. It is likely that further sites will be added to our divestment programme in the future.
It is also important to note that while we have finished our review of vacant land, in reality this work doesn’t stop. Market conditions are continually evolving, demand for new housing can change, and more detailed due diligence may mean sites intended for redevelopment no longer work for us, or conversely, sites earmarked for sale may need to be reconsidered.
The four large sites we purchased when Kāinga Ora had an urban development mandate that included increasing the supply of build-ready land for all types of housing, may also be divested, following the Government’s decision to wind down the Land Programme.
Why does Kainga Ora own so much land?
It is important we have a strong supply of land available for future social housing developments because one of the biggest challenges with predictably delivering additional housing is securing land.
Under the previous government, Kāinga Ora was tasked with delivering a large volume of new social housing. Additionally, we had an urban development mandate that included enabling broader housing supply. We acquired land to meet the priorities of the government’s housing programme at the time. The agency delivered housing on most of the land it purchased. Some of the larger sites we acquired were intended for comprehensive residential development with a mix of social, market and affordable housing.
For more information
The following information is provided to assist with stories on our property sales. If needed, it can be attributed to a Kāinga Ora spokesperson. For details of Kāinga Ora properties currently on the market or properties that have recently sold please check Property sales.
Why are you selling some homes?
Kāinga Ora is undertaking one of the largest upgrades of state housing ever undertaken in this country.
We’re aiming to replace or extensively renovate around 2,000 homes nationwide each year for the next few years. Over the next 30 years, we are planning to renew or replace more than half our 78,000 homes across the country.
We sell older properties that are costly to maintain and are no longer fit-for-purpose so we can reinvest in new and improved housing. This enables more people and families to benefit from modern, fit-for-purpose homes.
It’s important to note that we are not reducing the number of Kāinga Ora homes. Each home we sell is replaced by a newly built home elsewhere so we’re not reducing the number of homes we own. The size of our housing portfolio will stay at around 78,000 homes.
How many homes are you going to sell?
We’re selling about 900 homes nationwide per year for the next few years - around 1% of our current portfolio.
Each home we sell is replaced by a newly built home elsewhere so we’re not reducing the number of homes we own. The size of our housing portfolio will stay at around 78,000 homes.
Where are those homes located?
We’re selling homes in regions across the country, with about a third of them in Auckland. Decisions to sell specific sites will be ongoing, and at any one time there will be properties at various stages of the process.
How do you select homes for sale?
We consider properties for sale based on age, location, value, and regional housing need.
For example:
- Older homes that no longer meet tenants’ needs, for example they are too far away from schools, employment and the other amenities.
- Homes in high-value areas, where selling one property can help fund multiple new homes in areas of greatest need.
While these properties may no longer work for social housing, they provide housing opportunities for other buyers and developers.
What will happen to Kāinga Ora tenants if their home is sold?
If there are tenants living in a home we plan to sell, we will support them to move to another Kāinga Ora home, carefully considering their needs in matching them to a home and community.
If the tenant living in the home doesn’t want to move, will you still sell it?
We will work closely with any tenants whose circumstances mean that a move will be particularly challenging. However, where a home will be sold, tenants will need to relocate, and we will offer them an alternative home that is suitable for their needs and support them with the move.
How are you selling these homes?
Properties are being offered on the open market to ensure we get the best possible price.
We appoint real estate agents through a robust procurement process. Interested buyers need to contact the real estate agent directly.
We use independent current market valuations (CMVs) to inform our listing expectations.
When a property sells for less than we expected, we weigh that against the overall return from all the properties we are selling.
As at April 2026, on average, our homes are selling above current CMV nationwide.
How does the Right of First Refusal work?
If a property has a Right of First Refusal (RFR) on it, we’re legally required to offer it to the relevant iwi for current market valuation before listing it for sale:
If iwi decline the offer, we can sell the property on the open market, but the terms can’t be more favourable than those offered to iwi under the RFR.
If we later agree to sell the property to another buyer at a lower price or on more favourable terms than those originally offered, we must re‑offer the property to iwi on those same terms.
How do you decide what price to sell a home for?
Before a property is sold, we obtain an independent current market valuation (CMV) from a registered valuer. It’s important to note that a rateable value (RV) doesn’t represent market value and shouldn’t be used to compare with purchase prices. The CMV reflects what a buyer might pay for a property in current competitive market conditions, whereas the RV is a mass‑appraisal tool used by councils to set rates. Ultimately, the final sale price is determined by the buyer, which means it can end up being higher or lower than the CMV depending on what they’re willing to offer.
Why do you sometimes sell homes for less than current market value?
We always aim to get the best price possible for the properties we’re selling. That’s why we are listing them on the open market. When a property sells for less than we expected, we weigh that against the overall return from all the properties we are selling. As at April 2026, our sales prices nationally were averaging 5% above current market value.
Why are some homes being sold ‘as is where is’?
For consistency across our national sales programme, we are selling all homes on an ‘as is, where is’ basis. Selling ‘as is, where is’ means the property is being sold in its current condition. It is a standard method of sale commonly used in the property market.
Have you sold homes before?
Selling homes or land is not new for Kāinga Ora. Like other property owners or developers, we regularly review our housing stock and sell properties that are no longer suitable for social housing, or surplus to requirements.
How do you choose your real estate agents?
We appoint real estate agents through a robust procurement process. Interested buyers need to contact the real estate agent directly.
Why are you selling vacant land?
We are selling vacant land that is surplus to requirements as part of a wider review of our land holdings across the country.
Selling surplus land cuts ongoing costs, unlocks capital, and opens opportunities for others to make use of the land – allowing us to focus on delivering warm, dry social housing for New Zealanders in need.
We’re selling the surplus land in a different market from when it was purchased – and that can impact the price we get.
If a site sells for less than we paid, we weigh that against the overall return from all the properties we are selling, the holding costs of the land, demand for social housing in the area and the benefits of creating opportunities for others to develop the site.
How will you sell the land?
As sites are confirmed for sale, they are generally listed on the open market through an appointed real estate agent. Where sites are subject to First Right of Refusal, iwi have the first opportunity to acquire them.
Will money from the sale of land also go towards renewing your housing?
Proceeds from the sale of land will either be reinvested in our housing stock or used to reduce debt.
More information
Tenancy issues
How do you deal with serious disruptive behaviour?
- Our job is to provide tenants with a stable home for as long as they need it. In return, we expect them to be good tenants and neighbours.
- On 1 July 2024 we implemented a new approach to managing tenancies and strengthened our response to disruptive behaviour.
- Our approach is about being fair but firm. When disruptive behaviour occurs, we work to understand what’s driving behaviour and refer tenants to specialist social and health services to address underlying issues if needed. Alongside this, we are also making earlier and more frequent use of the tools available under the Residential Tenancies Act (RTA) to drive behaviour change and provide a clear deterrent for disruptive behaviour.
- If behaviour does not change, we will end tenancies when we need to and not offer the tenant another home.
- Our approach is designed to provide a clear deterrent for disruptive behaviour and encourage behaviour change through making effective use of the tools available to us under the RTA.
What RTA tools do you use?
- We can make it clear to tenants that their behaviour is unacceptable, and their tenancy is at risk by issuing a Section 55A notice under the RTA. If a tenant receives three Section 55A notices within a 90-day period, then we can and will apply to the Tenancy Tribunal to end their tenancy.
- There are specific requirements in the RTA that must be met in order to issue a notice. This includes ensuring there is evidence of the disruptive behaviour and that the behaviour can be clearly linked to either the tenant or someone at the home with their permission.
- In limited situations that are severe, persistent or threatening, or where a tenant’s behaviour significantly breaches their tenancy agreement, we can and will apply to the Tenancy Tribunal to end a tenancy under section 55 or Section 56 of the RTA and not provide the tenant with another Kāinga Ora home.
- Data on our use of the RTA tools is published regularly on our website.
What is the difference between ending a tenancy and eviction?
- Eviction is a specific process involving the Tenancy Tribunal and District Court which only happens if a person refuses to leave the property after their tenancy has ended.
- In almost all situations, Kāinga Ora can resolve a situation without needing to resort to eviction.
More information
- Most Kāinga Ora tenants – more than 92 percent – pay their rent on time and are up to date with their rent payments.
- Our approach to managing rent debt focuses on helping tenants avoid falling too far behind. If a tenant misses a rent payment, we’ll get in touch quickly to understand why they have fallen behind and get back on track with their rent. Any missed rent must be repaid, and we can help put a reasonable repayment arrangement in place if needed.
- We support households who fall on hard times but are making genuine attempts to get back on track with their rent. We’re a social housing landlord so that’s the right thing to do.
- We are taking a firm approach with the small number of tenants who are not meeting their obligations to reduce their rent debt, are skipping rent payments or refusing to work with us.
- Our approach seeks to ensure that tenants will not have accumulated more than 12 weeks’ worth of rent debt when their tenancy is ended to prevent large debts in the future.
- Data on rent debt management is published regularly on our website.
Partial rent debt forgiveness
- At the start of 2025, we helped some tenants who owed a significant amount of rent debt to get on top of it faster by reducing the amount owed to a level that was more realistic for them to repay in full.
- This support was only offered to tenants who had 12 weeks’ worth of rent debt and were consistently paying their rent and making reasonable payments to reduce their debt.
- In return, tenants were expected to continue reducing what they owe and paying their rent on time and in full. If that did not happen, we took take steps to end their tenancy.
- Through this approach, we have forgiven $7.4 million in rent debt for tenants who met these commitments. Around 1,600 tenants have been able to bring their rent debt down to just 12 weeks.
More information
How is eligibility for social housing determined?
- Eligibility and priority for social housing is determined by the Social Allocation System administered by the Ministry of Social Development(external link) (MSD) based on need.
- MSD’s role is to assess and prioritise housing need and share the details of suitable applicants with social housing providers as homes become available.
What role does Kāinga Ora play?
- As a social housing landlord, the role of Kāinga Ora is to provide housing to those determined by the Social Allocation System to have the greatest housing need.
- When a Kāinga Ora home becomes available, MSD provides Kāinga Ora with the details of individuals and whānau from the Housing Register* whose housing and location needs match the property.
- Kāinga Ora then assesses this information, alongside any additional information gathered through conversations with applicants, to select the individual or whānau that is best suited to the home and community.
- Our placement process typically includes a detailed pre-housing conversation with the applicant to ascertain their needs, reviewing available properties, liaising with support services and other agencies if required, and having prospective tenants view the property.
*Media queries about the Housing Register should be directed to media@msd.govt.nz.
How much rent do Kāinga Ora tenants pay?
- Most of our tenants pay an income-related rent determined by the Ministry of Social Development, with the amount generally set at 25% of their net income.
- The Ministry of Housing and Urban Development pays the income-related rent subsidy to Kāinga Ora to cover the balance between the tenant’s rental payment and the market rent for the property.
- The market rent is set according to comparable rent charged for other properties of a similar type, size, and location.
More information
Does Kāinga Ora allow pets in its homes?
- Kāinga Ora is a pet-friendly landlord — we support tenants having pets, as long as they’re responsible owners.
- Tenants are expected to take full responsibility for their pets, including their care, containment, and wellbeing.
- We expect tenants to take care of their homes, including managing pets responsibly. If a pet causes damage beyond normal use, tenants will need to cover the cost of repairs.
Do tenants require consent to keep a pet in their home?
- Tenants will need to apply for written consent from Kāinga Ora if they want to keep a dog, cat, or livestock. They automatically have our consent to keep all other types of pets.
- As part of receiving consent to keep a pet, tenants must meet specific conditions. These include complying with local council bylaws, ensuring dogs and cats are desexed, and taking full responsibility for the containment, health, and wellbeing of their pet.
- There may be times when we can’t give consent, including:
- If the property is unsuitable for a pet.
- If body corporate rules or council bylaws prohibit pets.
- If a dog is classified by the local council under the Dog Control Act as dangerous or menacing.
- If the tenant is disqualified from owning a pet.
What happens if there are issues with pets at Kāinga Ora homes?
- Kāinga Ora cannot enforce any potential bylaw breaches, animal nuisance, or dog attacks – that is the responsibility of animal control at the relevant local council.
- However, if we get a complaint about a pet’s behaviour at one of our homes, we take it seriously. We’ll work with the tenant and the right agencies to help sort things out.
- In situations where a serious breach of the tenancy agreement occurs, we may withdraw consent for the pet. Depending on the circumstances, we may also apply to the Tenancy Tribunal to have the pet removed from the property.
General information
In line with the Kāinga Ora reset, we continue to look at how we can build new warm, dry and quality homes in the most cost-effective and efficient way.
We have developed a suite of pre-designed house designs called standardised designs (also known as optimised plans) for new single-level and double-storey homes in a range of sizes. New designs for three-level terraces and three-level and five-level-plus apartment buildings are also under development.
These standardised designs mean we can deliver new homes for those in need quickly and cost-effectively. Not only are we saving on design time, but construction is standardised, repeatable and therefore faster too.
What changes have you made to your house designs?
Some of the changes include:
- Simplifying the homes’ internal layout, reducing construction complexity.
- Fewer cladding types on exterior walls.
- Standardised sizing for walls, floor, cladding and windows to match available material dimensions.
Where are the homes using these new designs located?
We are building homes using these standardised designs across the country. The first homes to be built using these plans were completed in Rotorua in May 2025.
How long is it taking to build these new homes?
In Rotorua, homes built using these standardised designs have taken on average 28 days in design, to 110 days in construction. In some cases, it has taken only 69 days to deliver these new homes.
How has Kāinga Ora developed these standardised house designs?
The new designs were developed in conjunction with our build partners and design consultants.
What feedback has been received about these new homes?
We have received positive feedback so far from both build partners and people moving into the homes. Our build partners have said that these new house designs are much easier and faster to build. Some of the comments from tenants include:
“Very satisfied, everything with the way it is laid out is perfect.”
“Everybody has their own space, kids have their own rooms to go and play. When I’m cooking no one comes into the kitchen. Everyone has space.”
How much does one of these new houses cost to build compared with previous plans?
Our new standardised plans are helping us to decrease our construction costs. The move to new standardised house plans and other transformation work mean we are on track to meet and exceed our $2,980 per square metre target by the end of the 2026 financial year. The average build cost in FY24 was $3,473.
Are you planning further changes to your designs?
We are continually looking at how we can reduce cost and improve efficiency without affecting the quality and longevity of our homes. We continue to refine and improve upon our plans as we gather further feedback and information.
Are these the type of homes we can expect to see delivered from Kāinga Ora throughout the country?
In the short term, we are continuing to deliver homes contracted prior to these new designs. However, in future, most of our new homes will be contracted to our new designs.
For more information
We are focused on minimising the time our homes are vacant in between tenancies and ensuring people are moved into newly constructed homes as quickly as possible.
On any given day we aim to have 98 percent of our lettable homes tenanted – and we’re regularly exceeding that.
You can track the percentage of our lettable homes that are tenanted through our Quarterly Performance Scorecard. Statistics on our managed housing stock and vacant properties (including a breakdown by Territorial Local Authority) are also published quarterly on our Housing Statistics page.
It is important to note that:
- With a portfolio of around 78,000 homes, we'll always have a small level of vacant properties – due to the turnover in our tenancies, newly constructed homes being delivered and becoming ready to occupy, and homes being held for a time for tenants with specific needs.
- When a home is vacant between tenancies, we look at any maintenance work that needs to be done before a new tenant moves in. We have improved our processes and worked closely with suppliers to ensure repairs are completed as quickly as possible to reduce the time a home is vacant between tenancies.
- We take a careful approach to placing people into a Kāinga Ora home. This process typically includes a detailed pre-housing conversation to ascertain their needs, reviewing available properties, liaising with support services and other agencies if required, and having prospective tenants view the property. This is a process that can take time, and it is one of the reasons why it can take longer to tenant homes.
- Sometimes there is not perfect alignment between when a new home becomes available and when a tenant can relocate or move in. We engage with tenants to enable them, as much as possible, to relocate at a time that suits them. That can include timing with the end of a school year or aligning with hospital stays.
- From time to time there are situations where we need to keep ready to let homes vacant for a prolonged period because they are being held for a specific tenant.
- For vacant properties awaiting a decision on their future use, many are located within a small number of large, complex sites that have presented significant redevelopment challenges. As part of the Reset Plan, previous redevelopment proposals for these homes were paused and placed under review. This has contributed to a number of properties remaining in a pending decision state for over a year. Kāinga Ora is working through these complexities, and decisions for many of these sites are expected in the near future.
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- The core mission of Kāinga Ora is to manage and provide state-owned social housing.
- We are the country’s largest social housing landlord, with over 75,000 properties providing homes to about 191,000 New Zealanders.
- Tamariki (children) and rangatahi (young people) make up about 40% of the people living in Kāinga Ora homes.
- More than 97% of Kāinga Ora tenants are on low incomes and qualify for income-related rent.
- About 3,850 Kāinga Ora houses across the country are operated by more than 230 specialist Supported Housing Providers, either as Transitional Housing or Community Group Housing.
- Kāinga Ora builds additional social homes based on government direction, which tells us how many houses are needed and where they are needed.
- Over the two years to 30 June 2026, we will be adding 2,650 homes to our housing stock, bringing the total number of Kāinga Ora homes throughout New Zealand to around 78,000. We will do this through:
- removing old Kāinga Ora houses and redeveloping on the land
- working with construction firms to build houses
- buying completed homes from developers
- Kāinga Ora also has a focus on renewing existing homes to make sure our homes are in the right location and are suitable for the people that need them. We renew our homes through:
- renovating them through our retrofit programme, adding at least 50 years to their life
- removing homes and redeveloping on the same land
- selling the house and the land and replacing it with a new warm, dry home elsewhere
- Our focus on renewals means Kāinga Ora will strategically sell some social homes or land it owns. When we do this, we are not reducing the overall number of social homes. For each Kāinga Ora home we sell, we deliver a newly built social home elsewhere.
More information
What is Kāinga Ora’s approach to maintaining its homes
- Our portfolio of nearly 75,000 properties, and a commitment to ensuring homes are warm, dry, healthy and safe for tenants and their families, demands a significant maintenance programme and budget.
- Across all our maintenance programmes our budget for the financial year ending 30 June 2025 is $651m, and we expect to complete around 550,000 work orders. That’s more than one work order for every minute of every day of the year.
- The maintenance work we do falls into two sub programmes – planned maintenance, which includes proactive scheduled maintenance and upgrades such as painting, roof replacement and other routine work, and responsive maintenance generated by requests directly from our tenants.
- Our national maintenance contract includes five main maintenance partners, each covering a designated region, and around 10,000 trades across New Zealand operating 24 hours a day, seven days a week to take care of our homes.
- Kāinga Ora is currently looking at ways to transform all aspects of our maintenance delivery model to ensure we maintain our homes in the most cost-effective and efficient way possible. This is a key component of the Kāinga Ora Reset Plan.
Are vacant properties maintained?
- Yes. A home may be vacant between the end of one tenancy and the start of another, or for a longer period if the site is earmarked for redevelopment or the home is due to undergo major repairs or upgrades through our retrofit programme. During this time, we ensure the lawns are mowed and any rubbish is cleared away. We inspect and remedy any damage to the property or home, and we complete any necessary maintenance before a new customer moves in.
What is Kāinga Ora’s approach to lawn mowing and rubbish removal?
- Both activities are a tenant’s responsibility, and we make this clear when a tenancy is signed up, and in the tenancy agreements we use.
- We may assist with lawn mowing and rubbish collection where customers fall ill, are hospitalised, or have mobility or other challenges.
- From time to time, we pay for rubbish collection as part of community development initiatives, for example working with our neighbours and improving the look and feel of a street.
How do you manage mould in Kāinga Ora homes?
- We live in a climate with high levels of moisture, making us particularly susceptible to mould. It’s something that many landlords are faced with, and Kāinga Ora is no exception.
- The health and wellbeing of our people and whānau living in our homes is top of mind for us, and we know that serious cases of mould can have detrimental impacts on a person’s health. We take action when mould is identified, and we encourage our tenants to report any cases of mould to us, regardless of the cause or how much mould there is.
- A lack of proper ventilation is the most common cause of mould, and we encourage our tenants to open curtains and windows for short periods each day to let moisture-laden air out and fresh air in.
How often do you carry out property inspections?
- All tenanted Kāinga Ora homes are inspected at least once a year to check the general condition of the home and property, ensure smoke alarms are functioning, and that everything works as it should.
For more information
When was the Land Programme set up?
It was established in 2021 and allowed Kāinga Ora to borrow up to $2 billion to acquire and develop land to build-ready status.
What was the aim of the programme?
The programme aimed to increase the supply of build ready land across the motu, increase the pace, scale, and density of housing development, and increase the proportion of homes that were affordable for low-to-moderate income households, whether to rent or own.
What sites were purchased under the Land Programme?
There were four sites purchased:
- Ferncliffe Farm in Tauriko West, Tauranga
- 28 Adelaide Road in Mount Cook, Central Wellington
- 66 Quaifes Road, Christchurch
- Plimmerton Farm, Porirua, Greater Wellington
What’s happened to the Land Programme?
As part of the Kainga Ora reset, the Government has made the decision to wind down the Land Programme.
What does that mean for the sites you’ve already purchased?
We are currently working through options for the individual sites, including potential divestment. We hope to have an update on the status of the sites in the coming months.
If you decide to sell them, how will you do that?
Generally, as sites are confirmed for sale they will be listed and sold on the open market by an appointed real estate agent. Larger development sites may require different sale approaches which could include direct to developers and build partners in a similar way as the plots of land in our large-scale urban development projects are.
More information
Previous hot topics
What assessment criteria did you use when deciding what social housing projects would go ahead?
When we assessed the 466 social housing projects, we prioritised the locations where we are being asked to deliver new homes, or where upgrading our older homes is a high priority.
We also assessed the costs and proposed plans for the project, checking if they still stacked up financially, or whether there were better options for using the site.
How many homes will be provided through the 254 projects you are proceeding with?
Subject to final designs, these 254 projects will provide 1,821 homes. It is important to note that these projects are all at different stages of the planning process and in most cases, there is still design and feasibility work to be done before a final decision is made to contract the building work.
How many homes were going to be provided by the 212 projects you are not proceeding with?
Those projects would have provided 3,479 homes.
Why are you stopping so many housing projects?
The number of new homes we deliver is dependent on the funding we get from the Government. Over the two years to June 2026, we have funding to add 2,650 new homes to the state housing stock. We need to build those homes in the priority areas identified through the Government’s Public Housing Plan. In addition, over the same period, around 3,000 Kāinga Ora homes will be renewed, delivering warmer, drier and healthier homes for people in need, in the right locations.
In what locations are the projects you are stopping?
The social housing projects we are no longer proceeding with were proposed for sites throughout the country. Download the full list of projects not proceeding [XLSX, 35 KB].
Are there any projects that are still under review?
Yes –our planned Arlington project in Wellington is still under review.
Options for the Arlington site have been developed following a detailed assessment process, which has considered value for money and cost-effectiveness alongside the need for social housing in central Wellington. A briefing on these options has been provided to the Government, with Ministerial consultation required due to the size, complexity and cost implications of any redevelopment of the site. Depending on Ministerial feedback, an indicative business case for any preferred option, including costings and construction timeframes, will be finalised for consideration by the Kāinga Ora Board later this year.
What happens now with the sites you’ve decided not to build on? Will they be sold?
In most cases we are still assessing options for the sites. We may look to rework plans for a site or sell it.
For some sites we may need to wait for future decisions as part of our renewals programme. In a few cases where the decision was made early on in our assessment process to cancel the project, the site may already have been sold.
If there are homes on the sites, will they be brought back into the letting pool? Will tenants who were living in the homes be allowed to move back?
Where possible we will bring existing homes back into our letting pool. This has already happened at some sites.
The tenants who were moved out of those homes have all been moved into other Kāinga Ora homes. If a previous tenant wanted to move back, we would have to look at it on a case-by-case basis as there may be others with a more serious housing need or higher priority on the Public Housing Register at that point in time.
What’s included in the write-downs?
The money being written down represents the sunk costs spent on these projects during their initial scoping and planning phases and mainly relates to professional fees. These costs are typical across the wider construction sector in the early stages of a project.
Why didn’t you make provision for these write-downs in your budget?
Every year we budget for some write-downs – it's something every prudent developer does as not every project started will prove to be feasible or economically viable. This amount we’re writing down is significantly more than the $21 million we had made provision for in our budget. That’s because our reset reviews have highlighted an abnormally high number of projects and land holdings that no longer make sense for Kāinga Ora if we want to get ourselves in a better financial position. As we have exceeded our savings targets in other areas, we can largely offset the costs.
What is the breakdown of costs for the projects?
We won’t have a final breakdown of costs for these projects until our audit process is completed after the end of this financial year. That’s why we’re only giving a range for the value of write-downs at this stage. A breakdown of the range by territorial authority is available.
We will have an exact figure once we’ve finished auditing.
More information
Why have you decided to sell the Dixon Street Flats?
The 11-storey heritage-listed building has been used for social housing for more than 80 years. However, the age, condition and configuration of the building means it would need significant upgrading if we wanted to keep using it for social housing. The size of the building and the extent of the work required made the costs of upgrading extremely high, and the holding costs for ongoing security and maintenance are also significant.
As part of our reset we have been looking closely at our property portfolio to ensure we’re spending funds wisely and investing in the right places at the right time.
After carefully considering the cost and complexities of continuing to use this historic building for social housing, we decided selling it would be the best course of action as it would open up opportunities for others to make use of the building.
Why did you have to offer it first to Taranaki Whānui Limited?
The property is subject to a Right of First Refusal. Port Nicholson Block Settlement Trust (PNBST) are the mandated iwi authority that manages the Treaty Settlement on behalf of the broader beneficiaries of Taranaki Whānui.
How much did the building sell for?
We have accepted an offer of $1.04 million from Taranaki Whānui Limited. While this is below the property’s most recent valuation, we are comfortable that the price reflects the unique value of the building.
Why have you taken so long to reach a decision on the future of the Dixon Street Flats?
The unique aspects of the building added a layer of complexity to the decision-making on what should be done long-term with the property. Up until late 2024 we have also still had customers living in the building.
Does this decision signal that Kāinga Ora is moving to reduce its portfolio of social housing in the Wellington region?
Kāinga Ora remains committed to delivering on the government’s social housing expectations in the Wellington region and will continue to invest in both growing and renewing the State housing stock.
How will the funds from the sale be used?
When we sell a Kāinga Ora property or land, the funds are reinvested to renew our homes.
Download the Sale of Dixon Street flats information sheet [PDF, 288 KB]
Winton Land Limited, Sunfield Developments Limited, and Kāinga Ora-Homes and Communities have reached an agreement in respect of the High Court proceeding brought by Winton alleging anti-competitive conduct by Kāinga Ora. Lakeside Developments Limited, Housing New Zealand Build Limited and Kāinga Ora Homes and Communities have also reached an agreement in respect of another High Court proceeding brought by Winton. No party has admitted any fault or wrongdoing, and the proceedings will be discontinued with no issue as to costs. All other matters relating to the agreements are confidential, and the parties will not be commenting further.
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