Government revealed on the weekend it was also open to selling the houses to overseas organisations.
Brisbane-based not-for-profit charity Horizon Housing has expressed an interest in purchasing 400 properties.
Mrs Bennett said that was nothing new. Local branches of foreign organisations were already involved in social services in New Zealand.
The proposal to sell some of New Zealand's state housing stock to overseas owners later came under heightened scrutiny in the debating chamber.
Labour leader Andrew Little questioned how a Gold Coast-based provider would be responsive to the needs of New Zealand families in social housing.
Prime Minister John Key said any overseas provider would be required to be registered in New Zealand, to regularly engage with tenants, and to carry out routine inspections, maintenance and repairs.
He added: "If the head office of a company or organisation rules somebody out from doing anything then I suggest the member never go and have another Big Mac because .... the head office is in America."
Speaking to reporters, Mr Little said Housing New Zealand had managed social housing for 80 years.
"What has changed that has meant they have to hand this over to an outfit on the Gold Coast?"
He said that an increasingly run-down housing stock did not mean that the properties should be sold off.
"Let's go off the ideology and flogging off state assets to overseas owners and let's focus on the real issue which is getting Housing New Zealand back doing the job it's meant to be doing."
Government has identified Tauranga and Invercargill as the first two places where state houses would be sold.