KiwiBuild is just one part of the Government’s plan to tackle the housing crisis. KiwiBuild exists to give New Zealanders who have been locked out of the housing market a fair chance to own a home of their own.
KiwiBuild works with developers to build quality, affordable homes in the right places, at the right prices - changing what we build, where we build, and how we build it.
KiwiBuild works with developers, off-site manufacturing suppliers and the private sector to:
- increase the speed of developers bringing homes to market
- increase the number of affordable homes developers include in their developments
- purchase land for Government-led developments
- work with innovative companies that use modern factory building techniques, to increase capacity and reduce costs to buildintegrate affordable housing into major urban development or regeneration projects
- set price caps for KiwiBuild homes
- make homes available exclusively to eligible KiwiBuild buyers
- supporting developers to sell homes and connecting them with eligible KiwiBuild buyers.
KiwiBuild homes are built by developers and builders, assisted and supported by KiwiBuild.
How KiwiBuild homes are priced
KiwiBuild homes are not subsidised. They are sold prices agreed between KiwiBuild and developers.
- In Auckland and Queenstown-Lakes, a KiwiBuild home cannot exceed $650,000.
- In Wellington, a 3 or more bedroom home can be up to $550,000. In all other regions, the maximum price for a KiwiBuild home is $500,000.
- In some developments, there will be larger homes of four bedrooms or more that may be above the price caps.
It is important to note that these are price caps. In many cases, homes sold for under the price cap.
KiwiBuild helps developers achieve a more affordable price-point by underwriting a portion of a development and encouraging them to use land efficiently. This reduces a developer’s holding costs and allows them to build faster and more efficiently.
How KiwiBuild acquires land for housing
The Land for Housing programme is one of the mechanisms KiwiBuild uses to acquire land. The KiwiBuild Unit identifies and acquires suitable Crown or private land, and then on-sells it to developers or iwi with a requirement to build a percentage of quality, affordable new homes.
Kāinga Ora and other government agencies that are involved in building houses are working with KiwiBuild to include KiwiBuild homes in their developments.
Buying off the plans
The Buying off the Plans initiative involves the Government underwriting or purchasing new homes off the plans to lessen the risk to suitable developments, led by the private sector or others, in exchange for accelerating a greater number of affordable, KiwiBuild dwellings.
Underwriting KiwiBuild compliant developments, by either guaranteeing a minimum price or direct purchase of completed dwellings to be resold as KiwiBuild homes, gives banks and other financers reassurance to lend money to developers. This means construction gets underway faster, in turn bringing homes to market sooner.
This initiative enables developments that otherwise would not have been undertaken to be completed, speeds up developments and ensures the construction of affordable homes.
Large scale projects
The Large Scale Projects initiative uses existing Crown land and purchase additional land from the private market to allow for major urban regeneration projects. The developments include KiwiBuild, public and open-market housing.
Offsite manufacturing is the planning, design, fabrication and assembly of homes at a location other than the final site for the home. These homes are sometimes referred to as modular or pre-fabricated homes.
Offsite manufacturing can reduce the cost of construction but its greatest benefit is the speed at which the homes can be built.