Affordable housing

What's the difference between Affordable Housing and Social Housing?

In New Zealand, social housing and affordable housing are two distinct types of housing designed to address different needs within the housing market:

Affordable Housing

Affordable housing refers to housing that is affordable for people with moderate incomes; generally, those who may not qualify for social housing but still face challenges in accessing suitable housing in the private market due to high housing costs.

Affordable housing aims to bridge the gap between social housing and market-rate housing by offering housing options at reduced prices or with subsidies. These housing developments are often facilitated through partnerships between the government, private developers, and community organisations to ensure affordability for the target population.

Social Housing

Social housing, on the other hand, refers to housing that is provided by the government or approved social housing providers to support individuals or families with low incomes or specific needs. It targets those who are unable to afford suitable accommodation in the private market.

Social housing is often offered at below-market rents and may include additional support services for tenants. The primary goal of social housing is to provide secure and affordable housing for vulnerable populations, such as low-income earners, the elderly, or people with disabilities.

What are the housing issues facing the Taupō District?

Since 2013, Taupō district's population has surged by 18%, but housing supply hasn't kept pace. As a result, adequate housing, particularly for lower-income residents and their whānau, is hard to come by. Though incomes here are lower than in other parts of the country, house prices mirror trends in larger, wealthier regions.

We have a mismatch – plenty of high-end houses for sale but almost no affordable options or rentals. The rental market is especially dire, with availability at an all-time low across the spectrum. On the flip side, there's no shortage of short-term rentals for vacationers.

Furthermore, a number of homes, especially rentals, fail to meet healthy home standards. Renovations needed to make these homes healthier, like insulation or double glazing, can be costly. Unhealthy homes are particularly problematic for Māori whānau, who are disproportionately affected by issues like overcrowding and unhealthy living conditions.

Why we are proposing affordable housing solutions

The answer to solving our housing issues requires many solutions, but affordable housing is a significant piece of the puzzle. We aim to see more availability and choice of housing, with a sufficient supply of affordable and social housing. We want fewer people living in motels, fewer needing emergency housing, and more secure, affordable homes.

One of the solutions is releasing council-owned land for development. Taupō District Council owns the district's largest block of undeveloped residential land – the East Urban Land (EUL) – which has space for at least 1,600 homes. This land could be sold to developers or used to build affordable housing directly.

Progressive Home Ownership (PHO) is another part of the solution. This scheme helps low and median-income households into home ownership with methods such as shared ownership, rent-tobuy, and leasehold arrangements. We're also investigating ways to support alternative housing providers and models in the district, from community housing to shared equity schemes.

Another solution is to bring in a Community Housing Provider (CHP) who can manage affordable rentals and provide essential support services to social housing tenants. Planning tools, like zoning provisions, can support affordable housing too.

We're considering inclusionary zoning, which would require developers to contribute a certain amount of affordable housing in their developments. Lastly, we're looking into the impacts of holiday homes and short-term rentals on housing and rental supply. We plan to balance the needs of residents and tourists effectively.

By focusing on these strategies, we're working to ensure everyone in our district has access to a warm, dry, safe, and affordable home – a crucial step towards making Taupō an even better place to live and work.

Action plan

Facilitating affordable housing - to rent and buy

These actions focus on increasing the supply of affordable housing options to rent and to buy, to meet current and future demand. Due to the large number of actions in Focus Area 1 we have split the work programme into short, medium, and long term delivery based around Long-term Plan timeframes.

Short-term actions

COUNCIL OWNED LAND / COUNCIL PORTFOLIO OF HOUSING

Develop a business case for Long-term Plan 2024-34 to investigate options to facilitate delivery of affordable housing within the East Urban Lands (EUL).

DISTRICT PLAN

Undertake changes to the District Plan in parallel with National Policy Statement – Urban Development and investigate how the District Plan can best achieve the outcomes identified in this strategy. This will include investigating areas suitable for housing intensification and the use of other planning mechanisms that can influence housing affordability.
Develop urban design guidelines to achieve quality affordable housing developments, particularly within the EUL, with potential to incorporate this into the District Plan.

OTHER

Investigate peer to peer accommodation provision across the district to better understand any impacts on housing and long-term rental supply, and options to manage any negative impacts.
Upload a housing dashboard on the council’s website to show up-to-date housing data for the district.
Maintain an ongoing relationship with the community, iwi and hapū to ensure there is a joined-up and supportive approach to housing in Tūrangi and Mangakino.

Medium term actions

COUNCIL-OWNED LAND / COUNCIL PORTFOLIO OF HOUSING

Make sure affordability is a key consideration in the release of EUL land to the market.
Ensure council-owned land is released in a way that is responsive to market needs and promotes competition and choice in the market.
Work closely with Kāinga Ora and community housing providers to facilitate the development of affordable and social housing across the district, including on council-owned land.