Kāinga Ora has decided to halt a controversial social housing project in Auckland’s northern suburb of Millwater at Bonair Crescent, citing financial unviability as the core reason for its decision.
The plan, which initially aimed to add 37 two-bedroom units to Auckland’s social housing inventory, faced significant opposition from the local community, leading to a pause in construction before it could even commence. Despite previously stating intentions to reconsider the project’s scope within the region, the state landlord ultimately concluded that escalating construction costs and a shifting economic landscape made the investment untenable, leading to the decision to sell the property originally acquired in 2020.
Caroline Butterworth, Kāinga Ora’s Deputy Chief Executive for Auckland and Northland, told State media outlet RNZ that the decision was influenced by a nearly 40% rise in the cost of building materials and labour since the land’s purchase. The selected construction methodology was deemed unsuitable for the site, prompting a reassessment of the project’s cost-effectiveness.
Despite the u-turn Kāinga Ora is still committed to enhancing public housing availability in the Hibiscus and Bays Local Board area, keeping in mind community feedback for future projects, said Butterworth. Kāinga Ora is actively working on 2005 homes across tje Auckland metropolitan area.
