New analysis pinpoints communities with the most urgent housing needs
The Government released its first Housing Investment Plan on Friday, 21 November, introducing a new approach that directs funding toward areas with the highest housing need.
Housing minister Chris Bishop announced the plan at an Emerge community housing development in Auckland.
The plan identifies five locations with the highest housing need: Far North, South Auckland, Eastern Bay of Plenty, Gisborne, and Hastings. Major centres including Auckland, Hamilton, Wellington, Christchurch, and Tauranga will also remain investment priorities.
The Ministry of Housing and Urban Development analysed Housing Register applicants and severe housing deprivation data at the territorial authority level to determine these locations.
“This analysis helps distinguish which locations have a higher prevalence and overall volume of need so that we can target our investment to make the biggest difference,” Bishop said.
Focus on smaller homes
The plan prioritises one- and two-bedroom units, reflecting current demand on the Housing Register, where 55% of applicants require one-bedroom homes. Kāinga Ora’s existing stock includes only 12% one-bedroom homes.
In Hamilton, Tauranga, Wellington, and Christchurch, the Government intends to purchase only small homes. Other locations will receive a majority of small homes, along with some family homes.
South Auckland will see investment in 170-190 homes, primarily one- to two-bedroom units, with some three-plus-bedroom homes.
Procurement process
The Ministry will run competitive procurement in each investment location beginning in late February 2026. Contracting is expected by the end of 2026, with housing delivery commencing from July 2027.
Kāinga Ora will not participate in this funding round as the organisation focuses on financial recovery. The agency recorded debt of $16.5 billion in 2023/24, up from $2.3 billion in 2017/18.
Community housing provider support
The Government has established two initiatives to reduce borrowing costs for community housing providers. Crown lending facilities of up to $150 million for the Community Housing Funding Authority began in September 2025, with interest rates expected to fall by 1%.
The CHP Loan Guarantee Scheme, launched in October, allows the Crown to guarantee 80% of loans to providers, supporting up to $900 million in new lending and refinancing.
Flexible Fund established
Budget 2025 created a Flexible Fund with $41 million in operating funding over four years and $250 million in capital funding for additional homes from July 1, 2027. The Government said this funding will enable 675-770 social homes and affordable rentals.
Bishop noted that the fund consolidates previous housing programmes into one flexible pool that can support various interventions, including affordable rentals, which it has described to have become a permanent part of the housing support continuum.
Since the Government took office, community housing providers and Kāinga Ora have delivered more than 6,800 net new social homes, according to the housing minister.
