The Government is promising to build 34,000 homes in Auckland over 10 years.  Of that, 13,500 will be social housing and 20,600 will be sold on the open market, some priced at "affordable" levels.

Social Housing Minister Amy Adams revealed the plans in a pre-Budget announcement in Auckland today.

Adams said 8300 rundown houses on Crown land would be replaced with 34,000 new homes. Some of these houses were part of already-announced building projects in Tamaki and Hobsonville.

The houses would be for New Zealand's most vulnerable families, first-home buyers, and for the wider market. They would be built in areas like Northcote, Hobsonville and in Tamaki.

Housing New Zealand would be responsible for building 24,300 of them.

Because 8300 houses will be demolished to make way for the new developments, the net increase in houses will be around 26,000. This included a net increase of 5000 state houses over 10 years.

Many of the old houses were more than 40 years old or had too many bedrooms, Adams said.

About three-quarters of Housing NZ tenants needed one or two-bedroom homes.

The new properties would be a mix of apartments, houses, and terraced housing.

Speaking to media after the announcement, Adams said the "affordable" homes would be priced at less than $650,000. This was the threshold which allowed buyers to get access to first-home buyer grants.

It was not yet known how many of the 20,600 houses being sold on the open market would be priced at affordable levels.

Source: NZHerald