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Home / Rotorua Daily Post

Rotorua housing crisis: Kāinga Ora has built dozens of new public houses, but are they enough?

Cira Olivier
By Cira Olivier
Multimedia Journalist, Bay of Plenty Times·Rotorua Daily Post·
16 Jul, 2021 07:00 PM7 mins to read

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The number of builds by Kāinga Ora is being described as not enough for the sheer demand. Photo / File

The number of builds by Kāinga Ora is being described as not enough for the sheer demand. Photo / File

Kāinga Ora has built dozens of public houses in Rotorua in three years, tracking ahead of schedule - but a city leader says they are "hardly enough to make an impact".

Figures provided to the Rotorua Daily Post Weekend under the Official Information Act show that since July 2018, the agency has built 73 houses, bought eight and demolished 22 in the city.

Of the 73 builds, 12 are new and 61 are redevelopments - higher-density houses replacing demolished old state houses.

The net increase in stock was 41 homes.

When the agency - then called Housing New Zealand - released its public housing plan for 2018-2022, it planned to add 60 new housing places in Rotorua by June next year.

In an August 2018 press release, then-Housing Minister Phil Twyford said the overall 275 planned for the Bay of Plenty region would be "new homes built over the next four years".

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Rotorua Lakes councillor and Whānau Ora chairwoman Merepeka Raukawa-Tait. Photo / File
Rotorua Lakes councillor and Whānau Ora chairwoman Merepeka Raukawa-Tait. Photo / File

The plan itself said there would be an "emphasis on new builds", which were expected to form a "significant majority of the additional supply".

While the 73 builds are more than the 60 planned, Rotorua Lakes councillor and Whānau Ora chairwoman Merepeka Raukawa-Tait said they were not enough.

Raukawa-Tait said the number of houses added to the Kāinga Ora portfolio so far was "hardly enough to make an impact".

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"They could double the number of houses and it wouldn't be anywhere near enough."

There were 690 people on the waiting list for public housing in Rotorua, according to the latest Ministry of Social Development's housing register.

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Rotorua Lakes Council community wellbeing deputy chief executive Jocelyn Mikaere said while it was good to see houses being built, "thousands" more were needed.

"We need a range of new development across the city with the appropriate infrastructure and amenities to support the growth."

She said housing was a key priority for the council and there had been a "significant" amount of work in recent months to put into place the right actions for Rotorua.

She said the council's Long-term Plan 2021-31 set out a target for building and developing 3000 new homes in five years (6000 by 2030) and seeing additional land available for 4000 residential sections.

"We cannot achieve this by ourselves," she said.

Partnerships with Central Government, agencies and iwi are needed.

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Te Taumata o Ngāti Whakaue housing first team leader Jordon Harris said the partnerships were needed to remove any barriers to make way for forward-thinking housing developments.

Rotorua Lakes Council community wellbeing deputy chief executive Jocelyn Mikaere. Photo / File
Rotorua Lakes Council community wellbeing deputy chief executive Jocelyn Mikaere. Photo / File

Whānau and iwi needed to build papakainga, housing developments on whenua Māori needed support, the council needed to repurpose spaces in the city and current homeowners needed to put tiny homes on their properties.

"If we want to see an end to homelessness in Rotorua we are going to need to see more homes built across the sector."

He said the Te Arawa Alliance Lead role at Te Taumata o Ngāti Whakaue planned to work with iwi and key stakeholders to scope the situation and barriers across sectors.

Harris said they hoped to play a role in highlighting where the increased focus and investment needed to be to make the best impact.

Classic Builders director Peter Cooney said a house took 14 to 16 weeks to build, however, issues and delays could arise from consents, plans, finding available land and site inspections.

He said there was more available land in Rotorua than in Tauranga, which was facing a land crisis linked to a lack of planning and previous infrastructure spend.

Rotorua Budget Advisory Services manager Pakanui Tuhura said his clients in emergency housing were battling "stiff" competition to find affordable, decent homes.

The average rent in Rotorua in May was $485 a week, up 7.8 per cent on the same time last year.

Classic Builders director Peter Cooney. Photo / File
Classic Builders director Peter Cooney. Photo / File

The latest Real Estate Institute of New Zealand report showed Rotorua's median house price was $587,500 in June. That was down 1.3 per cent on the $595,000 in May but up 23.4 per cent on $476,000 a year ago.

Clients spoke with Tuhura about the priority given to those with a "higher social rating" when looking for a state house.

"We are unsure who monitors this rating, what makes up the rating or ultimately determines who gets priority."

He said while not enough houses had been built in the last five years, any increase was better than none, but "it cannot be left to one agency alone".

Kāinga Ora homes and communities Bay of Plenty regional director Darren Toy said the agency had a land acquisition programme to help deliver more homes.

Rotorua Budget Advisory Service manager Pakanui Tuhura. Photo / File
Rotorua Budget Advisory Service manager Pakanui Tuhura. Photo / File

In the Bay of Plenty, Kāinga Ora was working hard to deliver more public housing for whānau, recognising the pressing need for more warm, dry and modern homes, he said.

He said the agency was exploring a range of options to increase housing supply, including the redevelopment of its own older properties, partnering with other landowners, and purchase of land.

It worked closely with councils around infrastructure and site-specific requirements, drawing on Kāinga Ora's ability to unlock and develop land for public housing.

A Ministry of Housing and Urban Development spokesman said addressing decades of under-investment in housing wouldn't be achieved overnight, and needed the commitment of many stakeholders.

He said the 2018-22 Public Housing Plan, along with its follow-up released earlier this year, would deliver 650 additional public housing places in the Bay of Plenty by July 2024.

A $3.8 billion Housing Acceleration Fund was announced by the Government in March which included a Kāinga Ora Land Programme to increase build-ready land supply.

The fund set aside $350m to enable infrastructure for Māori Housing, alongside Whai Kāinga Whai Oranga's commitment of $380m over four years.

Kāinga Ora was also intensifying its efforts in the region to identify opportunities to build new housing to provide more permanent homes, he said.

Kāinga Ora homes and communities Bay of Plenty regional director Darren Toy. Photo / File
Kāinga Ora homes and communities Bay of Plenty regional director Darren Toy. Photo / File

Rotorua Lakes Council housing work under way

• Housing Strategy developed in partnership with Te Arawa and Government agencies
• Plans to invest $424m into core infrastructure - roading, stormwater, sewerage and water supplies - over the next 10 years
• Progressing a District Plan change to facilitate housing at Pukehangi
• Council and NZTA received Government funding for roading and stormwater upgrades to support proposed housing at Wharenui
• Collaborating with Tatau Pounamu Collective on an eastside locality plan
• Long-term infrastructure planning.

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