The Government will develop new modern homes at Doncaster Drive. Image / Supplied
The Government is pumping tens of millions of dollars into new state homes in Tauranga to address the housing crisis, with 74 due to be built this year compared to zero in 2022.
Touted as “significant”, it’s the biggest Kāinga Ora building programme in the city in years and is expected to provide economic spinoffs for the construction sector.
Tauranga City Council commission chairwoman Anne Tolley said, however, that while the new homes were an important contribution to Tauranga’s social housing need, they had to be seen in the context of an estimated shortage of around 5000 homes and costs that are “unaffordable for many people”.
“Council, Kāinga Ora and other housing providers are working hard to bridge that gap, but it will be some time before greenfield developments like Ferncliffe Farms and Tauriko West and intensification within our current footprint start to make a real impact on our housing shortfall.”
Tauranga’s social housing landscape is unusual in New Zealand in that most of its state homes - some 1,138 - were sold in 2017 by the National government to social housing provider, Accessible Properties Limited, which continues to operate them and expand its portfolio.
When the Labour-led government was elected later that year, it began increasing state-owned stocks in the city.
Kāinga Ora Bay of Plenty regional director Darren Toy said it was exciting to see the progress it was making in providing more public housing in Tauranga.
“At Papamoa 13 homes were completed last month, which we are currently matching suitable whānau to move into. Work is underway or soon to start on a further 61 homes – at Haukore St, Waihi Rd, Doncaster Dr, Redmond St, Grosmont Terrace, Ohauiti Rd and Cameron Rd, with these expected to be completed by the end of this year.”
More than $15 million was being invested into housing redevelopments at Haukore St, Hairini, where it planned to build 27 one- and two-storey standalone and duplex homes across 12 sites (11 already owned by Kāinga Ora and one purchased).
The homes will be a mix of one to four bedrooms, with double glazing, carpets, curtains, an easy-to-maintain fenced and private section, and off-street parking.
“Our build partner Classic Builders is about to start site preparation at some of the sites, with the first 11 homes due to be completed by the end of this year. Construction on the other 16 homes is scheduled to start in the coming months.”
More than $5m would be spent to build eight homes at 355-359 Waihi Rd, Judea, replacing three old Kāinga Ora homes. They will be two and three-bedroom, single- and double-storey homes.
Classic Builders started site preparation started last month, with the homes expected to be completed late this year.
Kāinga Ora was also partnering with Gemscott, a company developing 41 homes at 171 Doncaster Dr, Pāpāmoa. These homes range in size from two to five bedrooms and were being purchased by Kāinga Ora for $36.2m.
“This is new land, and Kāinga Ora has agreement to purchase and take ownership of these homes on their completion in two stages, with the first 13 homes due to be completed and handed over to Kāinga Ora. Suitable whānau for these homes are currently being identified.”
Toy said the build programme would provide opportunities for local build partners, trades and suppliers.
“It is expected to be significant for the build and construction sector ... There’s an economic spin-off benefitting people and businesses in the residential construction sector.
Development planning and design work for Ferncliffe Farm, a 95.4 hectare site in Tauriko West for 1000 homes was also progressing. Kāinga Ora paid $70.4m for that site.
But Bay of Plenty MP Todd Muller said with “this government the gap between what is promised and what is delivered remains remarkable”.
“Everyone supports social housing being built but it does seem to be taking an inordinate amount of time. It feels like it’s whatever they touch in this city it feels like the BayPark overpass - a lot of sound and fury and it takes years to actually get built.
“I hope that the same thing doesn’t happen here.”
Housing Minister Megan Woods said the National Party was “utterly missing in action on housing when it was in government” and Labour was “turning around” a housing crisis it inherited.
“National only added about two more public homes a year, over its last term in Government. In contrast, we have added 448 additional public homes to the city (about 80 homes per year), with 250 more in the pipeline. We are the first Government since the 1970s to invest heavily in land development and housing infrastructure like pipes and roads to get more housing underway.”
A total of $147.9m has been invested in Tauranga through the Infrastructure Acceleration Fund, while the Ministry for Housing and Urban Development had acquired 52.2 hectares of land in Pāpāmoa.
Classic Group managing director Matt Lagerberg said it had been building homes for the Government since 1998 and it was required to follow a tender process that “is often price competitive”.
“Affordability is an increasing struggle for anyone trying to attain the security and comfort of having a roof over their head, whether that be through ownership or renting. We are working with Kāinga Ora across the country to help deliver more homes to Kiwis who desperately need them.”
Lagerberg said there was no doubt the Tauranga homes would give the local industry a great boost.
In his view, there had been a significant lack of investment in infrastructure from central Government and Tauranga was years behind in terms of growth, so any major project like Ferncliffe Farms was significant.
“This delay has driven up the cost of development and building, making housing more unaffordable. We have a serious land supply shortage here that is hindering growth and causing far-reaching economic issues.
“This project will bring positive outcomes to the city, increasing growth and opportunity in the region, but we need more infrastructure support to enable the release of more projects like this.”
Bay Financial Mentors manager Shirley McCombe believed more social housing in Tauranga was a great addition but not the only answer.
“Unfortunately, the need is growing faster than can be met. Tauranga is growing and demand continues to grow. Where demand exists, prices will continue to grow.”
She said many of its clients were taking on private rentals they could not afford because they were desperate to find a home for their children.
According to the housing register, there were 753 applicants on the waiting list in Tauranga in the December quarter compared to 777 at that point in 2021.
Kāinga Ora data shows as of December 31 there were 427 state homes in Tauranga, including the 197 transferred from Tauranga City Council’s elder housing portfolio in a $17.2m deal in November. Kāinga Ora committed to spending $32.4m on upgrades and redevelopments of the seven villages over 25 years.
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