Budget 2022 supports New Zealanders most affected by rising housing costs
Budget 2022 sets aside $2 billion for initiatives to help more New Zealanders buy their first home, increase affordable housing options, maintain momentum in public and transitional housing delivery, and address homelessness.
We are making changes to the First Home Grant and First Home Loan, so more New Zealanders can access these products to overcome the deposit barrier and purchase a modestly priced first home.
These changes include:
- increasing the house price caps for the First Home Grant to align with lower quartile estimated values for new and existing properties.
- removing house price caps from the First Home Loan, which will provide a greater choice of homes for prospective first home buyers.
- adjusting eligibility criteria for First Home Grants and Loans to improve access for Māori, Pacific peoples, and families with children.
- increasing the loan cap of the Kāinga Whenua Loan from $200,000 to $500,000 to provide more choice and opportunities for people accessing the loan for housing on whenua Māori.
Find out more about changes to First Home Grants and First Home Loans
Helping grow the affordable housing sector
The Affordable Housing Fund is a $350 million investment to support the development of new, affordable homes for low-to-moderate income people and whānau, in locations facing the biggest housing supply and affordability challenges.
The first stage of the Affordable Housing Fund will offer $50 million worth of grant funding to not-for-profit organisations to deliver affordable rental housing in Auckland, Tauranga- Western Bay, Rotorua, Napier-Hastings, Wellington Metro, and Nelson-Tasman.
Find out more about the Affordable Housing Fund
Maintaining momentum in public and transitional housing delivery
Public and transitional housing are a vital part of our social support system. This Budget supports ongoing delivery of public and transitional housing, including the new places committed to through the Public Housing Plan 2021-24
Find out more about how we are working to increase public and transitional housing
Responding to homelessness
Budget 2022 will fund kaupapa Māori support services, homelessness outreach services and the expansion of transitional housing and a new supported accommodation service for rangatahi.
Current approaches to preventing and reducing homelessness do not always meet the specific needs of Māori. Māori providers want to be resourced to deliver in a more flexible way that better meets the needs and aspirations of whānau. Budget 2022 funding will be used to enable design and delivery of by Māori, for Māori approaches to supporting whānau in urgent housing need.
HUD already delivers a small number of rangatahi/youth-focused transitional housing. Budget 2022 funding will be used to expand this service. Funding will also be used to deliver a new supported housing service for rangatahi/young people with higher and more complex needs.
The $75 million provided through Budget 2022 for the Homelessness Action Plan will fund:
- $25m for the provision of kaupapa Māori support services
- $20m for the expansion of rangatahi/youth-focused transitional housing places
- $20m for the design and delivery of a new supported accommodation service for rangatahi/young people with higher and more complex needs
- $10m for homelessness outreach services.
Find out more about the Aotearoa New Zealand Homelessness Action Plan 2020-2023
Published: May 19, 2022