Govt to sell billions of dollars worth of state housing land

Boarded up homes in Kilbirnie, where work on a planned development was halted. Photo: Lynn Grieveson / The Kākā

Long stories short, the top six things in our political economy around housing, climate and poverty on Wednesday, February 5 are;

1. Housing Minister Chris Bishop yesterday announced Kāinga Ora would be stripped of its ‘non-core’ activities of developing new land, managing First Home loans and KiwiSaver withdrawals and consenting its own projects;

2. Bishop detailed plans to add a net 145 new homes this year before capping the state housing stock at 78,000 for the next 30 years, with renewal and renovations of an already-tired housing stock paid for by land and home sales in leafier suburbs;

3. He said around 800 state homes on land in suburbs such as Remuera would be sold to deveopers in the current year, with ongoing sales in the years to come of around 900, with the potential to also sell bare land bought previously for redevelopment;

4. The combined proceeds from land sales would amount to billions per year and would allow Kāinga Ora to generate ‘sustained cash surpluses’ from the 2027/28 fiscal year, which would allow borrowing to stop and dividend payments to resume;

5. Cabinet decided to cut around 1,000 jobs from Kāinga Ora to save $1.4 billion over four years, including by demolishing surplus homes rather than transporting them to iwi, cutting maintenance spending by $50 million a year and reducing the size and quality of new homes away from the Homestar Six rating; and,

6. Stats NZ reported yesterday building consents fell 9.8% to 33,600 in calendar 2024 after the Government suspended Kāinga Ora’s new building work and high interest rates quashed private sector demand, leading to collapses of building firms and the loss of 13,000 jobs in construction last year.

(There is more detail, analysis and links to documents below the paywall fold and in the podcast above for paying subscribers. If we get over 100 likes from paying subscribers we’ll open it up for public reading, listening and sharing.)

Government plans billions of dollars of housing land sales