The Government will borrow $5 billion in the next four to five years to build 8000 state and transitional houses in partnership with housing providers.
National's housing spokeswoman Judith Collins said it appeared to be similar to the previous National-led Government's policy - which Labour was highly critical of - to partner with housing providers to boost overall supply.
It comes as the state housing waiting list is at a record high of about 15,000, almost three times as much as it was when the Government came to power in 2017.
The 8000 new homes will be split between 6000 state houses and 2000 transitional homes.
A Government spokesperson said construction had not started on any of the 8000 homes, meaning they would all be additional to the overall housing stock.