Construction of Ruapehu District Council's six new social housing units in Ohakune is on target for completion in August.
The $2.1m project in Moore St has been funded through the Government's Covid-19 response infrastructure fund, in partnership with the council.
The construction of the units was making a direct positive contribution to the local economy, and once complete they would help address a shortage of social housing in Ohakune, Ruapehu mayor Don Cameron said.
"The current Labour government has made housing a national priority and council believes we can play a constructive role in addressing the wide-ranging housing issues affecting all sectors of our community," Cameron said.
"Not only do we need more social housing but we also need suitable and affordable housing for single people, key workers, families of all sizes and older people."