Plans for 100+ new Rotorua Kāinga Ora homes reassessed after review, 300+ still promised

The “brakes” have gone on 110 Kāinga Ora homes planned for Rotorua after a Government shake-up.

But the housing agency says it still intends to deliver more than 300 new homes between now and mid-2026, given the city’s “priority” status.

Kāinga Ora has revealed more up-to-date figures to the Rotorua Daily Post for the number of houses it intends to deliver in the coming year.

Kāinga Ora Bay of Plenty acting regional director Karen Healey said in a statement that as of May 31, 217 homes were to be delivered in Rotorua by the end of next June.

She said this was on top of the 75 homes finished in the year prior.

A further 90 homes were contracted to be delivered before June 20, 2026, for a total of 307 confirmed on the way.

Kāinga Ora was planning to build 19 homes between 31 to 39b Matthew Place. It's not yet clear which homes will still go ahead. Photo / Andrew Warner

Healey said 110 homes previously planned for the city were now being “reassessed”.

A project map on Kāinga Ora’s website details homes planned in Rotorua and what stage they are at, but a Kāinga Ora spokeswoman said it was no longer entirely accurate given the recent changes.

Healey said the agency could not confirm which projects would go ahead or be paused.

“Some of these decisions will be made in the next few weeks and we will keep the community informed.”

Healey said further development for the region was being assessed as Kāinga Ora worked through decisions about its future social housing pipeline to “ensure best value for money”.

It did not necessarily mean all 110 homes would be scrapped.

Ten new homes were planned at 38 to 40 Meadowbank Cres. Whether they will go ahead is yet to be determined given a recent Kāinga Ora review. Photo / Andrew Warner

“A number of these developments will proceed as we confirm value for money and alignment with the Ministry of Housing and Urban Development priority locations through our reassessment process.”

She said Rotorua was one of the priority areas in the Public Housing Plan and Kāinga Ora was committed to meeting housing targets in the area.

Kāinga Ora has previously confirmed 24 apartments in two three-storey buildings planned for the corner of Ranolf St and Malfroy Rd were under assessment.

The Government has made several changes at Kāinga Ora and signalled more would be on the way after May’s highly critical review led by Sir Bill English.

How new three-storey Kāinga Ora apartments on the corner of Ranolf St and Malfroy Rd were planned to look.

It concluded the agency was underperforming and not financially viable. The agency pushed back, saying it was financially sustainable and some draft findings were incorrect.

Kāinga Ora announced on Monday its chief executive Andrew McKenzie had resigned as the Government’s changes to the agency’s role were not what he “signed up for”.

The Government has promised those in contracted emergency housing in Rotorua will get priority for the new social homes as part of its election promise to end emergency housing motels within two years.

Associate Housing Minister Tama Potaka previously told the Rotorua Daily Post it was anticipated about two-thirds of new homes being delivered between now and the end of next year would be made available to those in contracted emergency housing.

Kāinga Ora originally planned two homes at 3 Garnet Place but is yet to confirm if the development will go ahead. Photo / Andrew Warner

Tony Bradley of TPB Properties, which has done two large-scale residential building projects for Kāinga Ora, said there would have been a lot of tradespeople out of work if not for Rotorua’s latest social housing building boom.

“If it wasn’t for the Government doing what they were doing in the last year, there would be a lot of hurt going on but it had to slow up really, they couldn’t keep building at the same pace.”

Bradley had just finished 20 apartments on Lake Rd and was building 15 apartments on Fairy Springs Rd. Both developments were under contract with Kāinga Ora, with ownership being transferred to Kāinga Ora on completion.

He said it would be an uncertain time for many tradies until Kāinga Ora formalised its new plan.

“The brakes have been put on.”

His business had only planned to do the two residential developments so would go back to its core business of commercial developments.

“We needed houses so I thought I would get involved because I could do it.”

Kāinga Ora had originally planned 16 homes between 22 and 32 Kawaha Point Rd but it will not yet confirm the locations of which developments are being reassessed. Photo / Andrew Warner

Hepburn Electrical owner Tony Feek said his company had picked up contracts during the past year which helped during a “lull” from an economic slowdown, but had other work on the books.

“It’s not the golden goose we will chase but it was keeping us busy … We haven’t employed more but it did fill a potential lull during an uncertain time.”

He said he was not sure what the future work looked like given commercial and domestic jobs had “slowed right down” and there was talk of reduced building in schools and social houses.

“It’s a difficult time for all. It doesn’t help having Kāinga Ora pull back but on the other hand it wasn’t something Rotorua particularly wanted as it was giving us a certain branding.”

New homes for the eastern side of Rotorua

The first new Kāinga Ora homes on the east side of Rotorua have been officially opened.

The five two-bedroom, double-storey duplex homes on Wharenui Rd, Ōwhata were blessed by Ngāti Te Roro-o-te-Rangi kaumātua Paraone Pirika last Monday.

Families were in the process of being matched to the homes and signing tenancies.

An artist impresson of the new homes on Wharenui Rd.

Kāinga Ora Bay of Plenty regional director Darren Toy said at the time of the opening that the homes were well connected to schools and shopping centres.

“These homes will be welcomed by the five whānau who will be moving in over the coming weeks. We continue to work closely with MSD [Ministry of Social Development] and [housing service hub] Te Pokapū to reduce the use of emergency housing motels in Rotorua.”

Kelly Makiha is a senior journalist who has reported for the Rotorua Daily Post for more than 25 years, covering mainly police, court, human interest and social issues.