Budget 2025 focuses on reprioritising spending and improving value for money in the housing and urban development system

You can access the Budget statement on the Treasury website.

Budget 2025 | the Treasury(external link)

Budget 2025 introduces a ‘new investment approach’ to streamline programmes, improve value for money and flexibility to meet housing needs in place.

Budget 2025 confirms new funding of $128 million over the next four years to deliver at least 550 social houses in Auckland by the end of 2026. A further $82 million will be provided as upfront operating supplement payments for community housing providers in certain circumstances when contracts for new social housing are agreed. 

A key feature of the investment approach is a new contestable flexible fund. The fund of $41 million operating funding over four years and $250 million capital funding over 10 years will deliver 650 to 900 houses from 1 July 2027. The flexible fund will streamline our programmes, improve value for money and enable flexibility to meet housing needs in place. Decisions about how the flexible fund will operate will be made before the end of the year.

Funding was announced in February 2025 for 400 affordable rentals in places of high need for whānau Māori.

Other Budget features include:

• a range of savings initiatives to fund cost pressures, including reducing spending in the First Home Loan, Contracted Emergency Housing and Housing Infrastructure Fund
• reprioritising uncommitted funding within Māori housing programmes and delivering affordable rentals in places such as Rotorua and Gisborne
• refocusing the large-scale projects in Auckland to better align infrastructure investment with the Kāinga Ora renewals programme.

Read the Minister of Housing’s Budget press release on the Beehive website.

Delivering the right houses in the right place, for the right people(external link)