Project drives jobs and supply
The largest Defence housing project in decades is officially underway, delivering modern homes for military families and driving job growth in regional communities, Associate Defence Minister Chris Penk (pictured) has announced.
“Our sailors, soldiers, and aviators dedicate themselves to protecting New Zealand, and they deserve warm, modern homes to return to when off duty,” Penk said in a government media release.
“Too many homes across New Zealand Defence Force (NZDF) camps and bases no longer meet the standards we expect for our servicemen and women. Some were built as far back as the 1930s and remain run-down, poorly laid out and poorly insulated because of decades of underinvestment, making them unsuitable for modern family living.
Penk said at the sod-turning that it marked a significant step forward, with shovels going into the ground for the Homes for Families programme – the most ambitious Defence housing initiative since the 1980s.
New homes across the country
The government intends to invest up to $600 million into the Homes for Families programme through the Defence Capability Plan. Construction has begun on eight new homes at Linton Military Camp, alongside five homes in Bulls for personnel at Royal New Zealand Air Force (RNZAF) Base Ohakea.
“These new builds will include modern two- and three-bedroom homes, replacing outdated 1940s and 50s-era housing that no longer meet the needs of today’s military families or supports their wellbeing,” Penk said.
Work is also underway on 10 brand-new, three-bedroom homes at Burnham Military Camp in Canterbury.
In Auckland’s Bayswater, 61 new homes are being built by Ngāti Whātua Ōrākei’s property development arm, which will be leased by Defence for personnel from the Devonport Naval Base.
The government also remains committed to delivering 50 new homes at Waiouru Military Camp and will announce further details later this year.
The $75m Waiouru project was first approved in 2023, though construction has not yet started, with officials citing “commercial sensitivities.” Longer-term, NZDF’s housing regeneration plan aims to deliver 277 new houses, modernise 877, dispose of 267, and rent out 524, RNZ reported.
Jobs and economic benefits
Penk said the programme was only the beginning, with Defence preparing to go to market in late 2025 for further housing projects at Linton, Ohakea, Burnham, and Trentham. He noted that military families often relocate across New Zealand, making secure and modern housing essential to supporting family life.
Beyond the homes themselves, Penk emphasised the wider economic benefits.
The construction projects will create skilled jobs around military bases, generate opportunities for local businesses, and inject more money into regional economies. He said the initiative formed part of the government’s commitment to tackling New Zealand’s infrastructure deficit and ensuring Defence personnel have “a safe roof over their heads.”
An early 2023 estimate suggested regenerating all 1,900 NZDF homes could cost more than $1 billion in capital and $2 billion in operating spending over 25 years.
At Linton, the barracks also remain in poor condition, with closures for emergency repairs common. Defence is preparing a business case for more than 1,100 new barrack rooms and supporting facilities, RNZ reported.
Broader housing and lending impacts
While primarily a Defence initiative, the large-scale housing investment highlights ongoing demand for skilled construction and regional housing supply.
For mortgage advisers, such projects can ease pressure on local rental markets near bases and support broader confidence in the building sector, which flows through to lending opportunities and borrower sentiment.
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