Kāinga Ora spending nearly $150m on new and revamped state houses in Northland

Kāinga Ora has revealed its yearly budget for building state houses in Northland alone: $146 million.

Northland regional director Jeff Murray revealed the capital budget for 2024-25 as part of a Northern Advocate investigation into Kāinga Ora’s building work in Te Tai Tokerau.

It has 141 new homes across Northland under construction and a further 253 houses in the consenting phase, planned to be finished by the end of next year.

By comparison, the $146m budget is 25 per cent larger than Whangārei District Council’s $117m capital spend for 2024-25, as forecast in its Long-Term Plan.

Murray said Kāinga Ora’s forecast capital budget is for new and retrofitted homes in Northland, covering approved redevelopment projects in the procurement phase or later.

As well as construction costs, the budget covers all building costs, including council costs, professional fees and demolition, although the spend may not necessarily align with the total costs of building a home due to the time it takes, he said.

Kāinga Ora has a $150m-a-year build plan under way for housing in Northland, such as these two-storey homes currently being built on Churchill St in Kensington. Photo / Denise Piper

Kāinga Ora is undertaking a massive new-home build in Northland to help meet the high need, with more than 1200 whānau waiting for a state house, according to December 2023 Ministry of Social Development figures.

Murray said the focus is for new homes close to where there are jobs and services, including central Whangārei, Ruakākā, Kaitāia, Kāeo, Kaikohe, Kerikeri and Dargaville, with old state homes being replaced with three houses on the same site as district plan rules allow.

Of the approximately 1400 Kāinga Ora homes in Northland, just over 100 are not in use, Murray said.

As of February 29, 2024, 43 homes were vacant while being prepared for new customers to move in, 13 homes were unavailable to let pending decisions on future use and 57 homes were removed from service - such as being replaced or getting major repairs, he said.

Meanwhile, the Crown agency has already tenanted the first stage of a social housing development in Tikipunga’s Tiaki Rise, delivered with build partner Barrett Homes.

The first stage was completed in December 2023 and all 12 homes are tenanted. The second stage of a further 12 homes are on track for completion in the coming weeks.

The final stage of a further 11 homes are due to be finished in the second half of 2024.

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.