Kāinga Ora slashes social housing in Wellington

Thursday, 19 June 2025

Rusted iron columns and structures rest abandoned in an empty site at the former Arlington apartments and plans for 300 social housing units are now up in the air after a review by Kāinga Ora.

A review of social housing projects in Wellington by Kāinga Ora has resulted in 262 units being canned, with the fate of another 301 still to be decided.

The Arlington apartment site in Mt Cook has been iffy for some time and now its future hangs in the balance. But others have gone.

Fourteen Wellington developments have been halted. The biggest ones to go are 41 planned homes in Strathmore, 35 in Wainuiomata, 19 in Kowhai St in Naenae, Lower Hutt, 30 on Evans Bay Parade in Kilbirnie and 28 in Nuku St, Strathmore.

The write down range in Wellington is between $55 to $45m.

A call on Arlington will go before the Kāinga Ora board. Options have been developed and a briefing provided to the Government, with ministerial consultant required because of its size, complexity and cost.

A site at 132 Adelaide Rd was bought in 2023. Kāinga Ora said at the time there was a pressing need for housing in the area, but it will now be sold.

Kāinga Ora had been ordered by Housing Minister Chris Bishop to deliver a plan to ensure its financial viability.

Chief executive Matt Crockett said it was a critical step in its reset plan that would see it write down up to $220 million.

The department had prioritised locations where they were being asked to deliver new homes or where upgrading older homes was a priority.

It also assessed costs and proposed plans for the project, checking if they still stacked up financially, or whether there were better options for using the site.

Kainga Ora snapped up this Adelaide Rd section in 2023, but it will now be sold.

“These reviews were essential to ensuring we only progress new housing projects that make commercial sense and that we sell land which is surplus to our requirements so we can get on a more financially sustainable footing,’’

More than 460 social housing projects were reviewed and he said they did not stack up financially or were considered to be in the wrong places.

There would be 254 going ahead, building more 1800 homes.

It would also sell about a fifth - 36 hectares - of vacant land because it was no longer needed.

The proceeds would be put towards new housing or debt, and the agency would hold on to the remaining land for possible future development.

Rongotai MP Julie Anne Genter said the cuts were “gutting” for Wellington.

“We are seeing an increase in homelessness and rough sleeping in Newtown,” she said.

“I visited the Kaibosh food distribution at Strathmore Community centre earlier this week, and we are seeing an increase in people needing assistance with access to food and housing.”

It appeared the Government had responded to community pressure by saving projects in Newtown and Lyall Bay, Genter said.

Correction: A previous version of this story quoted Wellington Central MP Tamatha Paul saying Housing Minister Chris Bishop said the Arlington development was going ahead with Kāinga Ora working through some technical details. Bishop told Parliament the KO board had presented an option in relation to Arlington which ministers were considering. (Amended June 19, 2025 at 8pm)