Critical housing shortage: Kāinga Ora axes 40 new Northland projects

The desperate need for houses in Northland is being made worse by Kāinga Ora cutting new housing projects, a community advocate says. Photo / NZME

Northland is facing a critical housing shortage as Kāinga Ora formally stops 40 new housing projects across the region, a community leader says.

The proposed developments would have created at least 450 new state homes in central Whangārei, Ruakākā, Dargaville and the Far North as part of a big build for Northland.

The decision to can the projects is part of Kāinga Ora’s national reset under the coalition Government, after the agency’s debt ballooned from $2.7 billion in 2018 to $12.3b in June 2023.

Chief executive Matt Crockett said the review ensures only new housing projects that make commercial sense will progress, while land and properties no longer required is sold off.

The projects not progressing no longer stack up financially or are in the wrong locations, he said.

In Northland, the scrapped projects mean $10 million to $12m in costs will need to be written down, for planning costs that can’t be recovered.

Five new projects in Whangārei and one in Kaitāia, producing 45 new homes, will continue to go ahead in the next two years.

Whangārei District Councillor and community advocate Carol Peters said the large cuts to Northland projects have come when more investment is needed to prevent homelessness.

At least 450 new social homes are needed in Whangārei alone, she said.

“This represents a critical housing shortage that requires urgent attention to address the growing wait list of families seeking affordable, secure accommodation in our region.”

Peters said Northland – which has high socioeconomic deprivation – should have been prioritised for state housing by the coalition Government.

Carol Peters says Northland needs to be prioritised for more state housing. Photo / NZME

Instead, the need will fall on community providers, like Whare Āwhina, Ngāti Hine Health Trust, Kāhui Tū Kaha, Arataki Ministries and Habitat for Humanity, she said.

Whangārei District Council is doing its bit by focusing on pensioner housing, as well as freeing up more land for development, such as at Springs Flat.

Neighbours worried about state house density

While the changes mean there will be less new state houses in Northland, not everyone supported the projects.

A public outcry in Kerikeri in 2023 led to Kāinga Ora changing its plans for the town, while Ruakākā residents have been vocal against a proposed 50-home development in their village.

Kensington residents were also concerned about high-density development on Cairnfield Rd, with Kāinga Ora scrapping plans and instead redeveloping two houses.

Peters believed people needed to accept intensification – of both private housing and social housing – especially in Whangārei.

“Designing a city centre which is more intensive is one of the things that we have to face.

Kāinga Ora's largest development in Northland, the 95-home Kauika Rd development, will have 27 units ready this month. Photo / Denise Piper

“We don’t want to be Auckland – which is a great big sprawled out city. the more we sprawl, the more our rates will go up to fund the infrastructure.”

Tui Roman Snr, who represented elderly residents concerned about a high-density 50-house development in Ruakākā, said everyone is pleased the project is not going ahead.

“Everybody is over the moon, everybody can breathe again.”

The proposal, described as a “battery hen development” was to replace 16 state houses with 50 new ones, in a block across Tiki Pl, Tamingi St and Peter Snell Rd.

Roman said Kāinga Ora could have compromised on its plans to come up with something acceptable to the community.

She complimented the agency for looking after existing residents’ needs, including a number of elderly residents now happily relocated in new housing on Peter Snell Rd.

New Kāinga Ora houses were planned across Northland

The projects cancelled in Whangārei are:

• Rupert Clark Rd (5 units proposed)
• Wilkinson Ave (5)
• Paramount Pde (10)
• Paramount Pde & Hawea Pl (20)
• Tamingi St & Tiki Pl (29)
• Tiki Pl & Peter Snell Rd (18)
• Thomas St (2)
• Clark Rd & Griffin St (12)
• Chester and Ross (9, 17 and 18 in three separate projects)
• Vinegar Hill Rd & Balmoral Rd (13 and 9)
• Weaver & Moody Ave (12)
• Kamo Rd & McKintock St (15)
• Third Ave and Second Ave (33)
• Vinegar Hill Rd, Thomas St, Steere Pl (30)
• Smeaton Drive (3)
• Aratiatia Pl (9)
• Heretanga St (6)
• Meadow Park Cres (3 and 3)
• Jack St (5)
• William Jones Drive (12)
• Thomas St (15 and 9).

The scrapped Far North projects are:

• Donald Rd, Kaitāia (15)
• Waikare Rd, Kawakawa (1)
• Worth St, Kaitāia (6)
• Guerin St, Kaikohe (5)
• Kowhai Ave, Kaikohe (5)
• Purdy St, Kaikohe (6)
• Broadway & Tawanui Rd, Kaikohe (36)
• Bisset Rd, Kaikohe (2 and 41)
• Pukepoto Rd & Tangonge Cres, Kaitāia (10)
• Wihongi St, Kaikohe (1)
• Kerikeri Rd, Kerikeri.

The Kaipara projects no longer progressing were planned for Kauri St, and Awakino Rd and Gordon St in Dargaville.

New projects approved in Northland are:

• Allen Bell Dr, Kaitāia (6)
• Weaver St, Whangārei (12)
• Steere Pl, Whangārei (6)
• King St, Whangārei (8)
• Thomas St, Whangārei (8 in 2026 and 5 in 2027).

Projects that are currently being built in Northland are:

• Kauika Rd, Whangārei (27 due July, 68 due by June 2026)
• Murdoch Cres, Whangārei (12 due August)
• Pearce Dr, Whangārei (20 due August)
• Balmoral Rd, Whangārei (25 due July)
• Grigg St, Kaitāia (17 now complete).

Denise Piper is a news reporter for the Northern Advocate, focusing on health and business. She has more than 20 years in journalism and is passionate about covering stories that make a difference.