Government and Iwi Partnership Brings 48 Affordable Rental Homes to Gisborne

Te Rūnanganui o Ngāti Porou Leads $16.6M Housing Development to Tackle Shortages in Kaiti.

Mahi is underway in Gisborne to deliver 48 affordable rental homes in the suburb of Kaiti, marking a significant milestone in the Government’s efforts to address housing shortages in partnership with Iwi. Associate Housing Minister Tama Potaka attended a sod-turning ceremony to officially launch the earthworks for the Te Mano o Hamo housing development.

The project, spearheaded by Te Rūnanganui o Ngāti Porou with support from the Ministry of Housing and Urban Development (Te Tūapapa Kura Kāinga), aims to provide a mix of one- to four-bedroom homes for local whānau. The $16.6 million investment is part of a broader $82 million Government grant program supporting Māori-led housing initiatives across the country.

Addressing Critical Housing Needs in Gisborne

“Gisborne has faced significant housing challenges, including underdevelopment and a limited supply of affordable homes, compounded by damage from severe weather events,” said Mr. Potaka. “With 487 households on the Housing Register as of November 2024, Gisborne has the third-highest rate of households in need per 10,000 people in New Zealand. This development is a tangible step toward addressing these urgent needs.”

The Te Mano o Hamo project will see local tradespeople employed by the ICONIQ Group, ensuring economic benefits extend to the community during construction. The homes are scheduled for completion by August 2026, with rents capped at 80 percent of the market rate to ensure affordability.

A National Commitment to Affordable Housing

The Kaiti development is one of 12 housing projects enabled by the Government’s recent Māori Housing funding announcement. The program, which aims to deliver 198 affordable rental homes, prioritizes regions such as Northland, the East Coast, Hawkes Bay, Taranaki-Central North Island, Bay of Plenty (including Rotorua), and Waikato. Additional projects are also underway in Nelson, Taumarunui, and Masterton.

“The Government’s partnership with Iwi is producing real results for whānau across Aotearoa,” Mr. Potaka emphasized. “Developments like this demonstrate how collaborative approaches can alleviate housing pressures while respecting the unique needs and aspirations of Māori communities.”

Boosting Housing Resilience and Economic Growth

Beyond addressing the immediate housing shortage, the Te Mano o Hamo development is expected to bolster economic resilience in Gisborne. The use of local labor and suppliers ensures the project contributes to the region’s economic recovery following recent challenges, including extreme weather events.

A Broader Vision for Housing in New Zealand

The Te Mano o Hamo project aligns with the Government’s overarching goal of reducing emergency housing dependency by 75 percent by 2030. This target is supported by a range of initiatives aimed at increasing the supply of affordable housing, including funding for community housing providers, expanded access to Kāinga Ora developments, and incentives for private developers to create affordable rental units.

“This project in Kaiti is a shining example of what we can achieve together. The Government is committed to ensuring every New Zealander has access to safe, affordable housing. While there’s still work to be done, projects like this are crucial to building a better future for our communities,” Mr. Potaka said.

 

As construction progresses, the Te Mano o Hamo development is set to become a cornerstone of Gisborne’s housing infrastructure, providing much-needed stability and opportunity for local whānau. By combining Government funding with Iwi leadership, this initiative showcases the power of collaboration in addressing New Zealand’s housing challenges.