NZ Government Unveils New Actions to Tackle Rising Homelessness

The New Zealand Government has released the latest Homelessness Insights Report, revealing a worrying rise in the number of people living without shelter, and announced a series of reforms and new actions to confront the deep-rooted housing crisis. Housing Minister Chris Bishop and Associate Housing Minister Tama Potaka presented the findings and policy intentions, positioning homelessness as a national issue requiring both short-term support and long-term structural reform.

A Persistent and Growing Challenge

New Zealand’s homelessness has worsened over the past decade, despite billions spent on emergency housing interventions. Data from the 2013, 2018, and 2023 censuses shows:

• 2013: 4,122 people without shelter

• 2018: 3,624 people

• 2023: 4,965 people

This marks a 37% increase between 2018 and 2023, even amid significant public spending, including over $1 billion on Emergency Housing.

“Homelessness is a symptom of a dysfunctional housing market and is exacerbated during challenging economic times,” said Chris Bishop.

The Homelessness Insights Report by the Ministry of Housing and Urban Development (HUD) consolidates data and perspectives from frontline service providers, confirming the lived reality observed by groups like the Auckland City Mission, Salvation Army, and The Wise Group.

Why Accurate Counts Are Elusive

Measuring homelessness remains a challenge. People without shelter often move locations frequently, avoid state services, or fall through bureaucratic cracks. Despite this, agencies agree that numbers are increasing, and the need for immediate and systemic change is pressing.

Rejected: The Emergency Housing Model

Both Bishop and Potaka emphasized that the Government will not return to the previous Labour Government’s emergency housing motel model, which at its peak cost over $1 million a day and was, in Potaka’s words, “a social disaster.”

Instead, the new strategy is focused on targeted, community-driven, and evidence-based interventions, designed in consultation with local providers. These organizations, such as the Auckland City Mission and The Wise Group, are on the frontlines and offer insights critical for practical policymaking.

Short-Term and Transitional Actions

The Government has tasked officials with delivering targeted recommendations to better support people living without shelter. This includes:

• Assessing underutilised existing programmes like Housing First, Rapid Rehousing, and Transitional Housing

• Engaging with frontline groups to co-design improvements

• Exploring new policy options to reduce rough sleeping

• Reviewing how people leaving residential support services or prison can be better housed

Stable accommodation for those re-entering society is seen as essential to prevent repeat homelessness and reduce reoffending.

Major Overhaul of Housing Support Services

New Zealand’s housing support landscape is fragmented and duplicative, according to Potaka. Hundreds of overlapping contracts lead to administrative inefficiencies. The Government is currently conducting a full review of housing support services, with the aim to:

• Simplify the system

• Reduce duplication

• Focus funding on proven outcomes

The underlying message is clear: spend less on what doesn’t work, and more on what demonstrably helps people into stable homes.

Addressing Root Causes Through Structural Reform

Alongside immediate interventions, the Government is doubling down on its long-term housing market reforms. These include:

• Freeing up land for development

• Removing regulatory planning barriers

• Improving infrastructure funding mechanisms

• Creating stronger financial incentives for local councils to support new builds

A major milestone in this reform agenda will be the replacement of the Resource Management Act (RMA) with a more streamlined planning system, due next year.

Social Housing Adjustments and Better Targeting

The Government has also modified the funding framework for Kāinga Ora, New Zealand’s primary public housing agency. The changes allow Kāinga Ora to build more one-bedroom units, correcting a mismatch between housing supply and actual need:

• 50% of people on the Housing Register require a one-bedroom home

• Yet, only 12% of Kāinga Ora’s stock fits that profile

This move aims to better align social housing with demographic realities and support vulnerable individuals, including the elderly and single adults.

Progress Already Underway

Despite the sobering statistics, the Government pointed to early signs of progress. Under its “Priority One” policy, more than 2,100 children and their families have already been moved from emergency housing motels into stable homes.

“Homelessness is complex and there are no easy answers, but we’re determined to take meaningful actions,” said Bishop.

Looking Ahead

The current approach reflects a blend of immediate action, engagement with community partners, and structural reform, designed to create a more resilient housing ecosystem in the years to come. By moving away from costly and ineffective emergency models and emphasizing fit-for-purpose homes, the Government aims to restore dignity and permanence to those most in need.