Finished KO homes in storage across North Island

More than 100 completed Kāinga Ora homes are sitting in storage across the North Island and accruing storage fees.

In November, the Franklin Times saw several completed Kāinga Ora (KO) homes in storage at a South Auckland yard.

When approached for comment, Kāinga Ora general manager housing delivery Caroline McDowall said KO has 146 completed homes in storage at 12 locations across the North Island. KO would not release exact details of where the homes are located for security reasons.

“Most will be transported to redevelopment sites as soon as consents are obtained and sites are ready. We expect over half of these homes to be housing families within six months,” McDowall said.

Many of the homes were built in partnership with trade academies, “providing valuable training opportunities for students entering the construction industry”.

Kāinga Ora also purchased prefabricated homes from China to meet urgent housing demand.

“The majority are already housing customers, and only 15 remain in storage (included in the total above). While none have been deemed unsuitable for social housing, we are currently assessing options for these units to achieve the best outcome, which includes selling some of them.

“Total storage costs for all units are approximately $58,000 per month, so we are prioritising moving these homes onto sites as quickly as possible.”

When approached, Housing Minister Chris Bishop declined to comment, citing it was an “operational matter for Kāinga Ora”.

Last month, Bishop said billions had been poured into the agency while the social housing waitlist reached record levels. The number of people living without shelter increased by 37 per cent between 2018 and 2023, and the number of Kāinga Ora homes grew by only 6,300 over six years.

Bishop pointed to inefficiencies driving cost blowouts, including homes being built at prices 12 per cent higher than market comparisons, a staffing increase of 67 per cent over three years, and Kāinga Ora funding work outside its core role, including building-sector innovation and market housing.