What’s happening with housing?

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Jo Luxton, Labour List MP based in East Coast

Despite what National ministers claim, this Government is not providing enough homes for those in need, and historically, National governments never have. Here’s the timeline:

2008: National’s first big sell off
The previous National Government sold off 1500 public houses and $576 million in profits were taken out of Housing New Zealand (now Kāinga Ora) and given back to the Government as a "dividend”. That decision meant fewer homes were built or maintained and drove more people into unaffordable private rentals.

2017: Labour builds more homes than ever

When the Labour Government came in, we acted. Over six years, Labour built more than 14,000 public homes to help meet the growing demand.

2024: National cuts housing to the bone

National slashed $1.5 billion from Kāinga Ora’s funding - a devastating move at a time of rising need and homelessness, this cut also means existing homes aren’t getting the maintenance and upkeep they need.

False reliance on community

The Government claimed the community housing sector would plug the gaps it created by slashing Kaīnga Ora’s budget. The 1500 homes that were supposed to be built over two years with just $140 million would have been a mere drop in the bucket. To make matters worse, the sector has said it doesn’t have the capital to fund the builds. So far, only 879 places have been committed - just over half of what was promised.

2025: National turns a blind eye to homelessness

National claims success in reducing the number of people in emergency housing, but what they’ve done is restrict access. By making it harder to access community housing, fewer people are on the waitlist. Meanwhile, homelessness is increasing according to frontline providers across New Zealand. In the 2025 Budget they cut $1 billion from the emergency housing budget on the false pretence that demand is reducing. In 2023, about 8660 people applied for emergency housing each month. By August 2024, that number had halved. It’s not because the crisis eased, the rate of applications being declined tripled from 3 percent to 10 percent. Even victims of domestic violence are being denied emergency housing. The result is that more people are sleeping rough.

Mid-2025: Construction sector dives, 3500 homes canned

Minister Chris Bishop has ordered Kāinga Ora  abandon around 3500 planned public home builds and sell off more properties than will be built. This has also contributed to 15,000 construction workers losing their jobs, and a building sector that was booming but is now desperate for work.

Impacts in the Bay of Plenty

In the Bay of Plenty, at least 148 planned housing projects have been scrapped. This includes projects that would have seen 72 homes built in Whakatāne, which are no longer going ahead.

National’s claims of housing success don’t match reality. This Government is prioritising tax cuts for tobacco companies over providing social housing for those in need. The cuts have gone too far, and the harsh reality is that more vulnerable people are being forced to live in cars or temporary shelters. How can National claim to address the housing crisis when those most in need are continually left behind?

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