"How can you take down state housing when you have people waiting for a home."
She said half the 240 houses promised for Hawke's Bay would be state housing, and half would be entry-level affordable houses for first home buyers - they would be built under Labour's Kiwibuild programme.
Because the infrastructure was already in place where previous state houses had been located, she said the rebuild could start quite quickly dependent on the labour being available.
Her visit attracted about 100 people to Maraenui where after her announcement got a positive reception.
She spent some time chatting to people and posing for photographs before moving on to meet students at EIT in Taradale.