- Hon Chris Bishop
- Hon Tama Potaka
The first tranche of investment through the Government's Housing Flexible Fund is delivering more than 820 new social and affordable homes in areas where they are needed most, exceeding its initial target of 675 to 770, Housing Minister Chris Bishop says.
"The 823 homes are being enabled through Budget 2025 funding of $41 million in operating funding and around $60 million in capital funding. These homes will be delivered across nine locations, with the majority of funding directed to four areas with particularly high housing need: South Auckland, the Far North, Eastern Bay of Plenty and Gisborne-Tairāwhiti.
"In the past, governments have invested in social housing without a clear understanding of what is needed, where it is needed, and who is best placed to deliver it.
"In 2025, the Government created a new contestable Flexible Fund for social housing and affordable rentals to replace the current patchwork of programmes and funds. We also created a Housing Investment Plan to ensure that we would invest in the right houses, in the right place, for the right people, with the right support.
"These changes are a major shift to a data-driven, needs-based approach. Our new approach is now in place and is already making the social housing system better.
"The nine priority locations we are investing in through the Budget 2025 Flexible Fund places were identified in the Housing Investment Plan and are backed by strong evidence of need.
"With the first procurement round for the Flexible Fund now complete, the first homes are expected to be delivered and ready for tenants from July 2027.
The 823 homes will be delivered in:
- South Auckland - 190 homes
- Far North - 151 homes
- Eastern Bay of Plenty - 133 homes
- Gisborne-Tairāwhiti - 118 homes
- Wellington - 55 homes
- Christchurch - 53 homes
- Hamilton - 50 homes
- Tauranga - 50 homes
- Hastings - 23 homes
Around half of the homes will be social housing and half affordable rentals, with more than 30 Community Housing Providers (CHPs) involved in delivery.
"The Government has a clear focus on delivering the right places, for people in housing need, and our Flexible Fund is enabling this," Mr Potaka says.
"For example, we know that more than 60 per cent of people on the housing register currently need a one-bedroom home. As a result, more than 75 per cent of the homes progressing through the Flexible Fund are one- or two-bedroom homes.
"The Flexible Fund is also letting CHPs come to us with their good ideas and mahi. When we went out for procurement, we said - bring us your best ideas. This has already encouraged providers to go further. For example, Ōtautahi Community Housing Trust has committed to deliver an additional affordable rental home for every home it receives Government funding to deliver.
"Many of our preferred delivery partners selected through the Flexible Fund are Māori housing providers, reflecting the important role they play in delivering homes for whānau in areas of high housing need.
"Māori providers bring strong local relationships, specialist experience, and a clear understanding of the housing needs within their communities."
"The Ministry for Cities, Environment, Regions and Transport will now work with preferred delivery partners to approve specific projects and progress contracting."
"This investment builds on previous Budget commitments. Budget 2024 provided $140 million for 1,500 new social homes, followed by Budget 2025, which - in addition to the Flexible Fund investment - added $128 million which is supporting over 600 new social homes in Auckland, says Minister Bishop.
"Budget 2026 added a further $69.2 million for the second tranche of the Flexible Fund and will support delivery of 1,800-2,250 additional homes from 2028/29.
"Work is already underway on the next Housing Investment Plan, which will guide the allocation of Budget 2026 funding to support a further 1,800 to 2,250 homes over a three-year delivery period from July 2028.
"Together, these investments represent 4,800 - 5,200 additional social homes and affordable rentals. Our intention is to keep topping up the Flexible Fund in future Budgets to keep building and strengthening the pipeline.
"I am really proud that through the Flexible Fund we have now delivered the first proper long-term, funded pipeline for CHPs. The sector has been asking this for years, and we are doing it.
"In addition to building a stable pipeline, we have also made borrowing costs cheaper for CHPs. In 2025, the Government provided a liquidity facility for the Community Housing Funding Agency as well as a Bank Guarantee Scheme for lending to CHPs.
"This has already helped the sector get access to lower interest rates. In some cases, CHPs have refinanced from rates at about 8.5% to fixed rates as low as 4% for three to five years - which is a fantastic outcome and is helping to get more social and affordable homes built across New Zealand.
"Overall, since we came into Government, more than 8,400 social housing places have been delivered nationally, and the social housing waitlist has reduced from 25,483 to 19,003. However, it's clear there is more to do.
"The Government will keep doing the hard work to fix the fundamentals of the social housing system to help New Zealanders in need."
Notes to editor:
- Attached is a list of Flexible Fund preferred delivery partners.
- The locations of the 823 new homes relate specifically to the Budget 2025 Flexible Fund. Investment locations will be reassessed for any future funding rounds.
- Funding for social housing is primarily operating funding over a long-term contract. Affordable rentals primarily use capital funding.
- The purpose of the Flexible Fund is to have both operating and capital funding available, so that funding can be deployed to the highest and best use housing solutions that support people in high need.
- The Flexible Fund received Budget 2025 investment of $41 million in operating over four years, and $250 million of capital funding over ten years (of which, around $60 million is supporting the 823 homes). The remaining capital funding will support future investment through the Flexible Fund.
