Ms Lorck said that about two-and-a-half years ago residents met with Housing New Zealand to ask that something be done about the houses.
"Housing New Zealand said to some of the neighbours they would clean them up but nothing has been done.
"They also said the surrounding land would be sold, but it should not be sold off, it would be ideal to build more state houses on.
"If affordable homes were built in that area it could become a vibrant community - there's so much opportunity here."
In the meantime, the situation was not helping those people who owned neighbouring houses, she added.
"This is doing nothing for the equity value of these properties - residents have been very disappointed at the lack of action - they were promised progress on this issue and it just hasn't happened."
From a Labour Party perspective, she said, such land would be ideal for its proposed KiwiBuild programme, which would involve partnering with the private sector to build more affordable houses for first-home buyers.
Housing NZ Hawke's Bay area manager Andrew Cairns said the Ministry of Social Development last year signalled its intention to buy an additional 195 social housing places in Hawke's Bay, including 70 in Hastings.
"Housing New Zealand has currently retenanted some properties in Kauri St/Kauri Pl to help with social housing demand," he said.
Several years ago most of the properties demolished in the Kauri St and Campbell St areas were in need of earthquake proofing but it was deemed uneconomic to do so, and there was also a relatively low level of demand for social housing in Hawke's Bay, he added.
"Planning is underway with MSD to work out how best to meet its wider purchasing intentions and this will include the Kauri and Campbell Sts areas.
"Of the properties left standing in the Campbell and Bledisloe St area, it is disappointing that the level of vandalism is such the properties cannot even be used for short-term tenancies. This is a direct reflection on the issues with antisocial behaviour in the area."
Tukituki National candidate Lawrence Yule said the houses that were demolished had suffered years of neglect under successive Governments.
"National now has a policy to build 6400 new homes across New Zealand in this sector - it's not been announced what will be done in Hawke's Bay but I am confident Hawke's Bay will benefit."
He added that when decisions were made to demolish the houses that had had issues with earthquake risk, asbestos and methamphetamine, the demand was lower than it was now.
"There is a spike at the moment and it's hard for people, but the Government has provided new levels of temporary accommodation.
"Once those 6400 new homes are built I am confident this situation will be addressed."
Tukituki Green Party candidate Chris Perley said the situation in Hastings and across the country was symptomatic of the market, corporate model that had been adopted for Housing NZ.
"If you set a goal of having all people housed you need a government department that tries to achieve that goal - not require it to make a profit."