Category: Housing Sector

Source: New Zealand Government Kainga Ora

Chief Executive Andrew McKenzie outlines this approach and the work under way as the agency ensures the housing needed is delivered while working within its budgets.

Kāinga Ora is delivering new housing at pace – we have around 6,300 homes under construction or contracted to be built across the country.

Of these between 4,500 – 4,700 will be delivered in the 2023/24 financial year, with the remainder being ready to house people and whanau by the end of June 2025.

We also have another 2,000 homes in planning phases.

Every working day, we deliver around seven newly built homes, and the trajectory of our build pipeline means we continue to deliver the extra social housing which is urgently needed.

This is despite the significant cost pressures the construction sector faces.

Over the last three years, for example, the cost of building a home using traditional project processes has risen dramatically, with material and labour costs increasing by nearly 40 percent. Naturally, that impacts on our budgets.

A small portion of the homes in planning may not proceed due to the outcome of our feasibility assessments. Like other prudent developers, we constantly review and assess the feasibility of our planned projects to ensure they can still be delivered within budget and that the original business case still stacks up. Our planning also takes into account the supply intentions for additional social housing across the country, as outlined in the Public Housing Plan.

We put a significant amount of work into the planning, design and consenting stage of a new housing development to ensure that it is of a high quality, meets local regulatory requirements, and fits well within the neighbourhood. That work can be time-consuming and market conditions can change as we work through that process.

While we may not proceed with some developments, and several of these have been reported in the media, the vast majority of the houses in our pipeline are, and will be delivered. 

The rising cost of developing and building is something every developer in the country is grappling with, and having to re-evaluate projects goes with the territory – it would be unwise not to.

Creating more efficiencies

So we can continue to deliver houses as efficiently as we can, we have also been transforming our approach to building homes, developing a new housing delivery system that dramatically improves pre-construction and on-site performance. The time taken to design, consent and build homes has been reduced significantly, project delivery times are much more reliable, and cost is much lower. We have tested it on specific typologies of housing and know that it is a far better process to use for home delivery.

Given the rising cost of developing land and building houses, and the opportunity created by our new system, we have been reassessing projects where construction has yet to start, on a case-by-case basis, to determine if they are still financially viable, and whether there are more cost-effective options available. 

Typically, this involves firstly exploring the delivery options we have across a region for achieving our portfolio aspirations, and then examining how that specific site meets our needs, delivery risks the site might have, project financial feasibility and it’s fit with our preferred delivery method. Based on this analysis, we then make a decision on the best option – continue with our initial plans for that project, rescope it, or sell the land.

Funding our builds

The social housing model that Kainga Ora works to relies on the organisation borrowing 100% of the construction cost to build the additional homes requested of us, and then using the 60-70 years of rent revenue it will receive to pay the interest on that debt, repay it, maintain the homes, provide tenancy services, pay Council rates and other costs.

It also borrows to meet the up-front cost of a compressed timeframe for renewing its existing homes, as well as for redeveloping its existing landholdings so that land can support more intensive land use. We are also delivering 40 years of renewal activity – that’s the major upgrade or replacement of thousands of our older state homes – into a decade.

Kāinga Ora owns over $50 billion of homes and land, and has debt of $15 billion. That debt has increased by $13 billion since 2018, as the organisation has invested $14.5 billion into the construction of additional homes, renewal of existing homes and redevelopment of land to enable more homes to be built across New Zealand.

We acknowledge the construction sector is under pressure – as a residential build customer who partners with over 300 building firms  – we’re seeing that, but through the partnerships, systems and programmes we have, we are successfully delivering the additional housing this country needs.

Source: New Zealand Government Kainga Ora

“Before anyone moves in, we perform karakia and walk through the homes touching the walls and sprinkling water. This is done to cleanse the home and implant mauri (spiritual energy) into the whare (house).”

Morehu recently blessed two new quality homes built by the Iconiq Trade Academy. The two new homes have been built to full universal design standards so they can be easily adapted for people with accessibility challenges. The homes have been placed at the back of existing Kāinga Ora homes that had large sections. This makes the best use of our limited land that is close to schools, shops and services.

Morehu was joined by the whānau who are moving into homes and pakeke (elders) from the local Rongowhakaata iwi. “Having our nannies and papas along helps us to make sure we are doing the right thing and keep us safe.”

One of the people moving into the new Gisborne homes said “I really wanted to be at the blessing as it is part of my culture and important to make the home feel safe before my whānau move in.”

He has been living in a severely overcrowded home. At times there can be 15 people staying in the 3-bedroom home. He is moving close by with his partner and his niece. “It is good Kāinga Ora is blessing these homes,” he said. “We wouldn’t move into a new home before it was blessed and we knew we were protected.”

Morehu’s grandfather was also a kaikarakia. His extensive whānau connections in Tairāwhiti has helped him to connect with many of the people who move into the new homes.

When we can connect through our tipuna (ancestors) this has a huge effect on how the whānau feel as the whare is blessed, says Morehu.

“Karakia or blessings are like markers to indicate a move into another stage of your life. It is one of the steps towards overall wellbeing that a warm, dry secure home contributes to whānau.

The Iconiq Trade Academy is based at Gisborne airport where they build homes before they are transported to site and connected to services. Kāinga Ora is contracted to purchase 10 of these offsite manufactured homes from Iconiq this financial year.

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Source: New Zealand Government Kainga Ora

Neta and nine of her neighbours were invited by Kāinga Ora to join a free, 8-week digital literacy course run in partnership with 360 Tautua Trust, an organisation supporting elderly Pasifika.

“It’s very relaxed and friendly, we were all learning together and we had lots of fun along the way,” says Neta.

Before the course, Neta had only basic technology skills and felt overwhelmed when she tried to use websites or apps. Her children and grandchildren were agile users of smartphones and laptops, but Neta was out of the loop.

The course aims to educate participants about how to use the internet safely, steer clear of scams, email and browse websites, take and store photographs, and use apps – particularly banking apps, MyKaingaOra and MyMSD.

“The programmes are specifically designed to suit our elderly whānau, to help build their knowledge and enhance their lives when using technology,” explains trainer Fa’aulu from 360 Tautua.

To celebrate completing the course, a graduation ceremony was held and Neta was proud to receive a certificate – “the first certificate of my life,” she says.

The course was led in both Sāmoan and English, and at the end each participant could buy a Chromebook for just $50 so they could stay connected from home.

Neta says her newfound skills in technology have helped unlock the digital world – she particularly enjoys watching YouTube videos and chatting with her grandchildren by video call.

And her daughter Florence says it’s plain to see how Neta’s confidence has improved since the course.

“She used to say, ‘Oh, I don’t know how to do this’ but now she’ll say, ‘OK, I can do that’ and ‘I wonder what this is? Let me have a look’. And she’s very good with emojis!”

At Kāinga Ora, we’re proud to support the wellbeing of our customers by offering opportunities for learning to stay connected in the digital world.   

Source: New Zealand Government Kainga Ora

Delivered by Kāinga Ora in partnership with Landforce Developments, the single-level, stand-alone homes, with outdoor space and a car park, were welcomed with open arms by the community.

The homes have a 6-Homestar rating, meaning they are highly energy efficient and were built to full universal design standards, meaning they have features such as wider doors and level entry access that make them accessible to everyone.

Jo Haunui, Regional Placements Manager for Kāinga Ora in Northland, said the new homes will help meet demand for public housing in the Whangarei District region, in line with the Public Housing Plan.

“Following a formal karakia whakawātea (blessing ceremony) carried out by local hapū Patuharakeke, we were proud to open these beautiful homes with a hapū led ceremony and a moving performance by the amazingly talented children from Ruakākā Primary School’s Kapa Haka Group.

“We know the stability and positive impact these homes will have on the whānau matched to these homes and we’re really excited to hand over the keys. Five of the six homes have already been tenanted to locals, and the first customers will start moving in this weekend,” she said.

Karl Bryant, Development Design Manager at Landforce Developments, said they were proud to deliver these quality modern homes alongside local contractors for the Ruakākā community.

“These homes, constructed to HomeStar Level 6 standards, represent our commitment to providing high-quality, inclusive housing solutions that cater to diverse needs within the community. We believe that accessibility is not just a feature but a fundamental aspect of creating spaces where everyone feels welcome and empowered.

“I also wish to extend our sincerest gratitude to Kāinga Ora for their collaboration and support throughout this project and all our contractors for their tireless mahi on the job,” he said.

Source: New Zealand Government Kainga Ora

This adds to the 18 new homes completed on the 8,124m² site last year, which are a mix of 2, 3, 4 and 5-bedroom homes, bringing the total number of homes delivered by this project to 34.

Canterbury Regional Director Liz Krause says the completion of this development will help meet some of the demand for more public housing in the city.

“Redeveloping this site and making better use of the land has enabled us to provide more homes for people and whānau in an area of the city that has good access to transport, schools, shops and recreational facilities.

“The whānau that get to call this development home are able to make use of a communal garden, a play area and plenty of green space – which are stand-out features of the site.

“Whānau who moved into the homes completed last year have given us great feedback about living in their new homes.

“The feedback has focused on how well the homes and their modern designs work for them and their whānau, and how there is a real sense of community amongst neighbours.

Kāinga Ora customers will be moving into the final 16 new homes over the coming weeks.

“It’s so good to see our customers settling into this wonderful community now this development has been completed,” says Liz.

The Clyde, Aorangi and Bevin project is one of many planned for Bryndwr and Burnside over the next two years.

Cantabrians can now keep up to date on our projects in their neighbourhood by visiting our new Canterbury interactive maps..

Source: New Zealand Government Kainga Ora

Sites earmarked for clearance can be rich sources of kai for animals. Edible foliage such as twigs, branches, shoots and leaves, is known as “browse” and is in hot demand at Auckland Zoo.

“Browse is an important and nutritious part of an animal’s diet,” explains Ruth Nielsen, from the browse team at Auckland Zoo. “From the tallest mammal on earth, the giraffe, to Aotearoa New Zealand’s giant wētāpunga, browse benefits so many species here.”

Given the voracious appetites of wild animals, the zoo needs a constant and plentiful supply of browse, so Kāinga Ora leapt at another opportunity to contribute to a good cause.

“Being able to support the zoo is a privilege,” says Liz Ellis, a Stakeholder Relationship Manager for Kāinga Ora. “Any tree trimming and clearing is done in line with our commitment to improving biodiversity and urban ngāhere outcomes(external link), and we are always looking for new ways to work with the local community while reducing waste in our projects. This initiative makes our hearts sing.”

Kaimahi from the zoo’s browse team joined Kāinga Ora staff onsite to choose suitable plants, then worked directly with our arborist, Treetops, to collect the browse.

“Treetops gave us access to the site on the day, saving us a lot of time and energy by felling and removing the plants, then loading up our trucks. It was the easiest collection we have ever had. We ended up filling three truckloads to capacity!” says Ruth.

Browse also has uses beyond kai for animals. One of the ways zookeepers use browse is to encourage an animal’s natural foraging behaviour. For example, in the wild, orangutans are known to make tools from items they find around them. They can strip down leafy branches to create instruments to extract kai such as lentils or pureed vegetables within a frozen pinecone.

“The wide variety and large volume of vegetation covered half a week’s worth of browse needed for the zoo. We collect at least 140 bushy, 2-metre long branches for our giraffes each week.

“Banana is a fantastic plant for the primates and elephant Burma will munch through many plants each week. Bottlebrush flowers are a favourite for birds and primates; they love the sweet nectar and Burma will eat the branches and leaves. And our big cats love the lavender; new, fragrant vegetation is great enrichment for them.”

Happy munching to our wild friends at Auckland Zoo(external link)!

Source: New Zealand Government Kainga Ora

Maddy was living in a sleepout on her parents’ property when her first child, Luca, was born in 2017 and she quickly learned it wasn’t the ideal set-up for raising a baby.

“Being at home with the support of my family was great but the functionality and size of the sleepout we were in made raising a newborn challenging.

“I was also studying to become a nurse, which was stressful enough, so I decided that I needed to find my own space and learnt I was eligible for public housing,’’ says Maddy, who was offered a Kāinga Ora house in Mosgiel, which she moved into in late 2017.

“I was so grateful to my parents for allowing me to stay with them, but I was even more grateful to finally have my own space.

“Our Kāinga Ora home made raising Luca easier and gave me the space I needed to finish my studies and set us up for a positive future together.’’

In 2021, with her studies completed, Maddy set her sights on beginning her nursing career and got a job in Dunedin Hospital’s neonatal intensive care unit (NICU).

“I wanted to be a nurse from a young age and being able to work in NICU, helping bring new babies into the world, really is a dream come true,” says Maddy.

With a second child on the way, Maddy’s focus then turned to buying a home of her own for her family to grow in.

Not knowing where to start or whether she had the financial means to buy a home, Maddy sat down with a mortgage broker to see what was possible.

“That conversation opened my eyes to what was available as a potential first home buyer. I was surprised to learn of the financial boosts you can get to help you onto the property ladder.

“I was able to get a First Home Grant that boosted my deposit and meant I could get a First Home Loan that only needed a 5% deposit.’’

After her second child Beau was born and with her finances sorted, in October 2023 Maddy was able to buy a 4-bedroom home in Caversham, Dunedin that came with superb views of the city.

“We’ve settled into the neighbourhood nicely and are loving the views from our deck. It’s great to be in a suburb so close shops and the central city as well.

“Being able to make this place feel like a home has been a nice bonus of home ownership too – I hang photos and art and don’t have to worry about holes in the wall now!

“Both the grant and the First Home Loan are available through Kāinga Ora so it’s cool to look back on my journey from being a Kāinga Ora customer to now, with their help, owning my own home and being able to provide a stable future for my kids,” Maddy says.

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Source: New Zealand Government Kainga Ora

Kāinga Ora builds or purchases a variety of new homes to support modern living, including apartments. In the last six months Kāinga Ora has partnered with private developers to deliver 62 new apartments in Otago, Bay of Plenty, and South Auckland. This is in addition to the 252 new apartment units Kāinga Ora has built with its construction partners in Auckland and Wellington on land it already owns.

Patrick Dougherty, General Manager for Construction and Innovation, says houses represent the largest number of new homes completed in the last six months.  

“Houses, whether stand alone or semidetached , made up nearly 80 percent of all new public homes completed in the last six months.

“From Northland to Otago, in the regions such as Bay of Plenty, Taranaki, Manawatū, Whanganui, Waikato and Marlborough, new public homes help provide stability for kiwis in need.

“Living in a public home is an opportunity for people, whatever their stage of life, to build a brighter future for themselves and their whānau.

“Whether it’s a stable new home for children, or a home for older people to live well and away from over-crowded accommodation, a new public home can have a huge impact on someone’s life.  

“We’re on track to deliver 4,800 new public homes this financial year, 1,500 more than last year. The scale and pace of our residential development is helping more kiwis live well in warm homes today, and well into the future” says Mr Dougherty.

Source: New Zealand Government Kainga Ora

Around 100 people gathered earlier this month to join in the blessing of and celebrations to mark the completion of 10 new homes at Parekarangi Grove and Te Wharekaihua Grove.

The homes were blessed by Ngāti Tūrangitukua, alongside neighbours and representatives from Taupō District Council, Police, Fire and Emergency, Hato Hone St John and Neighbourhood Watch. Students from Te Kura O Hirangi marked the occasion with waiata and a haka.

The single and double storey homes are a mix of two, three and four bedrooms, and replace four old Kāinga Ora homes which had come to the end of their life. The modern homes are double glazed, and have carpets, curtains, off street car parks and a fenced easy care private section.

Build partner Devon Homes started work on site in April 2023, completing the homes on time, and as much as possible used local Tūrangi and Taupō contractors and suppliers during construction of the homes.

Darren Toy, Bay of Plenty Regional Director for Kāinga Ora says the homes will be welcomed by local whānau needing a home.

“These whare will be a place to call home for whānau, including tamariki, and give them the best chance of a new life in a warm, safe, dry and modern house as part of their wider community.

“It was a proud moment for myself and the team to celebrate the completion of these lovely new homes alongside Ngati Tūrangitukua, councillors, community organisations and neighbours.

“It’s been over 40 years since new public housing homes were last built in Tūrangi – so their completion is significant for both the community and for Kāinga Ora.”

A further 12 homes in Tūrangi are currently under construction by a developer for Kāinga Ora, with completion of the Tureiti Place and Rangiamohia Road homes expected in mid-2024.

Source: New Zealand Government Kainga Ora

The 30-year-old has progressively lost his mobility because of Friedreich’s Ataxia – a rare condition that affects some of the body’s nerves.

“Friedreich’s Ataxia is different for everyone, but for me it’s all physical and once diagnosed, I soon learnt I wasn’t going to be able to do what I had planned in the future.

“Going from walking everywhere and having no issues moving round a home, to having to use a wheelchair and having difficulty getting through doorways was really challenging, says Dillon.

In 2016, Dillon relocated to Australia to gain new life experiences and to meet more people with the same condition.

“It was a great experience, but as my condition progressed, being independent became more difficult and I knew I needed to be closer to my family,” says Dillon.

After almost a year living in Australia, he came home to Mosgiel to live with his grandparents.

“I was grateful to have a place to stay, but because of where my condition had progressed to I found it difficult to get in and out of the house and do things for myself. So it wasn’t the best living situation.”

It was weighing on Dillon’s mind and he knew things had to change.

In 2018 Dillon was offered an accessible Kāinga Ora home in Dunedin, equipped with a ramp and level entry, wide door frames and hallways, a wet room and a kitchen he could navigate easily.

Now settled in his Kāinga Ora home, Dillon is thriving, his mental health has improved, his independence has been restored, and he has more time to devote to his passion for wheelchair sports.

A talented wheelchair rugby player and core member of the Otago ‘Wheelanders’ team, Dillon is focussed on growing the sport and, as president of ParaFed, inspiring the next generation of wheelchair athletes.

“One of the best things about living here is the location – I can attach my bike wheel to my chair and pedal down to the ParaFed office. That’s meant I can dedicate more time to increasing opportunities for young people to get involved in wheelchair sports across Otago.

“I’ve got a bus stop right outside my driveway to go to the supermarket or other places whenever I like too. It’s so good,” he says with a big grin.

As an avid gardener, Dillon has created an impressive garden, with a vegepod, in his sunny courtyard.

“With the current cost of living, I’m now growing my own veges to save myself a bit of money.

“If I’m stressed, I can feel my condition progressing, so having this home with all of its accessible features and a garden – it’s improved my wellbeing tenfold.”