Network spokesman Alan Johnson said people were now living on the streets because Housing New Zealand would not provide them with shelter.
"In Manurewa where I live we now see people literally living in parks. That idea of street homelessness, from my memory, has never been around in South Auckland.
"What we see from time to time are families coming in with literally nowhere to stay, living in a car - somehow they don't meet Housing New Zealand's criteria.
"It's a fairly obscure process being run by bureaucrats who now hide in offices and behind an 0800 number."
Housing New Zealand South Auckland manager Denise Fink said the agency would contact the protesters and address their concerns. "We're aware there was a small group in Papakura earlier this afternoon. We'll be contacting representatives of this group of local stakeholders as soon as possible to meet with them to discuss any issues they may have."
She said houses were empty because of the oversupply of three-bedroom homes in Papakura.
"Most of our demand is for large, four-plus-bedroom homes, or smaller one- and two-bedroom properties. We currently have too many older, three-bedroom homes in Papakura that we don't have the demand for, which is why we have some vacant properties in the area. We are actively working to allocate vacant Papakura properties to families on the waiting list; however, very few need three-bedroom homes."