Key Takeaways
- The New Zealand government has announced a new approach to building houses, prioritizing whānau Māori, single parents with dependent children, older people, people with disabilities, and Pacific people in South Auckland.
- The plan includes affordable rentals to bridge the gap between social housing and the private market, reducing dependency on social housing.
- The government has been criticized for not providing enough new homes, with some areas missing out and others having unmet needs.
- The future of Kāinga Ora projects in Northland is unclear, with 40 projects cancelled earlier this year.
- The application process for the Flexible Fund opens in February 2026, with homes expected to be tenanted between mid-2027 and late 2029.
Introduction to the Housing Plan
The New Zealand government has announced a new approach to building houses, with a focus on prioritizing whānau Māori, single parents with dependent children, older people, people with disabilities, and Pacific people in South Auckland. According to Bishop, the plan will ensure that the right houses are built in the right place, for the right people, with the right support. This new approach includes affordable rentals, which will help to bridge the gap between social housing and the private market, reducing what Bishop calls "perverse incentives" that trap people in dependency.
Criticism of the Plan
However, not everyone is convinced that the plan goes far enough. Whangārei-based Green Party list MP Hūhana Lyndon welcomed the assurance of 120 new homes for the Far North, but questioned whether that was enough and whether other parts of Te Tai Tokerau would miss out. She noted that there are still unmet needs in terms of Kāinga Ora, and that the Government has yet to clarify the future of Kāinga Ora projects in Northland. Lyndon also questioned the Government’s definition of "Far North" and whether the allocation covers the wider region.
Kāinga Ora Projects in Northland
The proposed developments would have created at least 450 new state homes in central Whangārei, Ruakākā, Dargaville, and the Far North. However, 40 of these projects were cancelled earlier this year, leaving many communities without the housing they need. Lyndon said that the Government has emptied houses and knocked them down with no plan to rebuild, resulting in empty lots across communities. She also noted that there are 2000 Kāinga Ora homes sitting empty nationwide, and asked whether this is acceptable.
Flexible Fund and Application Process
The application process for the Flexible Fund opens in February 2026, with homes expected to be tenanted between mid-2027 and late 2029. There are 19,000 applicants on the Housing Register, with over 1000 of them from Northland. However, Lyndon claimed that the actual number of people in need of housing is much higher, perhaps around three times the official figure. She questioned how the community will be resourced to address the clear and evident need in the community.
Government Criticized for Lack of Funding
Labour’s housing spokesman Kieran McAnulty accused the Government of shrinking its own targets and failing to provide new funding for state housing. He noted that the Budget 2025 promised up to 900 homes through the flexible funding model, but the actual number has dropped to at best 770. McAnulty contrasted the Government’s delivery of 136 homes in two years with Labour’s 5299 homes in the two years prior, calling the Housing Investment Plan "nothing more than a rebrand – underfunded and underdelivering". He also criticized the introduction of leases from the private market, saying that it shows a lack of emphasis on new builds.
Conclusion
The New Zealand government’s new approach to building houses has been met with criticism and skepticism. While the plan prioritizes certain groups and includes affordable rentals, many feel that it does not go far enough to address the housing needs of the community. The future of Kāinga Ora projects in Northland is unclear, and the government has been accused of shrinking its own targets and failing to provide new funding for state housing. As the application process for the Flexible Fund opens in February 2026, many are left wondering whether the government’s plan will be enough to address the housing crisis in New Zealand.