PHOTO: Government Axes Over 200 State Housing Projects as Housing Crisis Deepens. FILE
📉 Just when Aotearoa needs more homes and economic stimulation, the Government pulls the plug on the country’s housing future.
In a move critics are calling economic vandalism, the National Government has confirmed it will halt 212 housing developments and sell off 36 hectares of vacant land owned by Kāinga Ora — the state housing agency tasked with sheltering our most vulnerable.
That’s not just bureaucratic belt-tightening — it’s a devastating blow to the tens of thousands of Kiwis currently on the public housing waitlist, many of whom are living in cars, motels, or overcrowded homes.
“At a time when we should be building our way out of the crisis, this Government is bulldozing hope,” one housing advocate said.
https://www.propertynoise.co.nz/introducing-nz-business-database-2024-the-ultimate-resource-for-connecting-with-new-zealand-companies/
💥 Economic Sabotage in the Middle of a Recession?
Let’s be clear: construction stimulates economies. Every halted build means:
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Lost jobs for tradies, architects, and labourers
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Cancelled contracts for small businesses and suppliers
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Fewer homes for growing families and retirees
Slashing public builds now is like pouring petrol on a fire, say economists. With the economy already limping, this housing freeze will drag New Zealand further into stagnation.
Even Kāinga Ora’s own CEO Matt Crockett admitted the agency will take a one-off write-down of up to $220 million — money already spent that’s now being flushed.
“We need to bite the bullet,” Crockett said. But many are asking: Why is the Government biting bullets instead of building homes?
https://www.propertynoise.co.nz/got-an-interesting-property-related-story/
🔄 Spin vs Reality: A “Reset” or a Retreat?
Housing Minister Chris Bishop is calling it a “reset”, part of a turnaround plan announced in February. His vision? Shift focus away from delivering state homes and toward being a “good social landlord.”
Translation: fewer homes, tighter budgets, and more spin.
Bishop claims Kāinga Ora will still build 1,500 homes a year, with 400 retrofits. But experts argue this is a dramatic downscale from the pace needed to address record-high housing demand.
And selling off public land? That’s not a reset — it’s a fire sale.
🏠 A Missed Chance to Build, Not Bail
Housing analysts are stunned. This was a prime opportunity for the Government to stimulate the economy by investing in housing stock, a proven method of:
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Reducing homelessness
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Creating thousands of well-paying jobs
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Lifting the construction sector
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Providing long-term infrastructure for communities
Instead, land that could house thousands will be sold off — likely to developers focused on profits, not affordability.
❗This Isn’t Just Poor Planning — It’s a Policy Failure
Let’s connect the dots:
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Mortgage stress is rising.
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House prices remain out of reach for many.
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The rental market is broken.
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State housing demand is growing monthly.
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And yet — the Government has pulled the pin on over 200 potential solutions.
This is not just mismanagement. It’s a blatant refusal to use the tools at hand to fix a housing emergency.
🚨 Where is the Urgency?
New Zealanders are not asking for miracles — they’re asking for shelter.
Kāinga Ora had shovel-ready projects and land to develop. Instead of pushing “go,” the National-led Government hit the brakes, choosing austerity over action.
In doing so, they’ve chosen to protect balance sheets over real lives — while the country watches another generation locked out of homeownership, or locked into housing precarity.