A higher share of this cost was spent in Auckland, the report found.
"Despite comprising only 35 per cent of the population, it represents 61 per cent of the total liability.
Social housing minister Amy Adams said the report set a benchmark to measure the country's progress and how its initiatives were working to help those in need.
"The valuation lets us measure success by how we change people's lives. It is part of our broader social investment approach - where we're building a better understanding of what works and for who and where to invest funds."
The report also found those households in social housing at the time the report was compiled were expected to spend, on average, a further 17 years in social housing.
The top five factors contributing to people being in social housing was the cost of the rental market, numbers of people in the family, the age of the primary householder and welfare and benefit history.
"People on jobseeker or sole parent support are about 70 times more likely to apply for social housing than those not on benefits in the last five years."
Pacific and Maori people remained overrepresented in the social housing system, with Maori five times more likely to be in social housing and Pacific people seven times more likely than those of other ethnicities.
Maori were more likely to exit the system as a result of "poor social outcomes" like being evicted, safety concerns, prison or issues of overcrowding.
The report was based on data around people in a social house, or on the MSD register from July 2014 to June 2015.
Adams said every valuation of the system gave a picture of what was needed to improve outcomes.
"We'll gain more evidence to invest earlier in the people who need it most, with the support that will make the most difference.
"The more we can support our most vulnerable people to become independent the better their lives will be."
Times are harder now
A Wellington nurse knows all too well how tough it is to get ahead when you have little to work with.
However, Sarah Bailey, said life as a single parent 19 years ago seemed far easier in comparison to many today.
She said her rent was cheap and the Government support, through the domestic purposes benefit, was enough to meet her and her daughter's needs.
"I had a coupon based power box which only cost $10-$20 a week; they (Winz) allowed me to work two jobs and not get penalised for it ... and while I was working at the supermarket at the time I got discount on my food ... how this has changed over 16 years."
Bailey said she paid just $115 a week in rent and received $375 a week from her benefit and was allowed to earn up to $100 extra on top of this.
After a year on the benefit, Bailey managed to reconcile with her partner and they have been together since.
Seventeen years on from when she was facing life as a single mum in a state house, Bailey and her partner bought their first home.
"Looking back over what we have been through, which at times felt tough, it is not as tough as now."
As at April 1 this year the rate for someone on a sole parent benefit was $329.57 - less than the $375 Bailey said she received weekly.
While income-related rent, for those on low incomes was only $110, the price of the rental market has grown across this time period, meaning without support it's that much harder to get off
According to a Statistics New Zealand rental affordability report, median rents increased 68 per cent between 1998 and 2012, from around $200 to $320 weekly.
In May this year Trade Me Rental Price Index showed the median weekly rent for a typical Kiwi property was now $450.
In comparison Bailey said her first private rental in 1994 cost them just $90/a week. In 1999 when she reconciled with her partner it cost them $135 a week for a three-bedroom house.
Bailey said looking at the market today she did not know how many on low incomes coped with the growth in prices.
