Forty Rotorua families have been given a state house to live in over the past six months, but 36 more remain on a waiting list for a home.
Ministry of Social Development figures show fewer people are on a waiting list than last quarter, but 16 of those on the list are classed as "at risk" with a "severe and persistent housing need that must be addressed immediately".
It's recently been revealed thousands of state houses could be put on the market, although Social Housing Minister Paula Bennett has said Housing New Zealand would remain the dominant force in providing social housing for the country.
The Government was working through details of possible housing sales, and said it was too soon to say whether Rotorua houses would be affected.
Housing New Zealand regional manager tenancy services Darren Toy said the agency had 677 properties in the Rotorua district, about 20 fewer than in 2010.