"It is substantially damaged," he said.
Four trucks with 16 firefighters attended the incident and extinguished the fire.
A woman claiming to be the sister of a man who lived at the address took to Facebook to thank members of the community for their support after the incident.
"My nephews & nieces are safe and with their dad," she wrote.
"Please accept our thanks to one and all for the lovely kind offers of items and things."
She went on to write that the family did not, however, need donations.
"The kids are fine and will still have the Christmas that was planned," the post read.
Another post on Facebook says: "Oh no! That's awful, so glad they're safe xxx mucho aroha."
A Housing New Zealand spokesman confirmed the house belonged to the agency, but declined to comment further.
Specialist fire investigator Gary Beer said investigations into the cause of the blaze were continuing.
"We are still open to anything. The police are still doing their inquiries."
Mr Beer said there had been some "background noise" as to what may have caused the fire, but he would not speculate.