On the day Auckland house prices have hit an average of $1 million, the Government's announced a $25m boost to funding for the city's social housing.
It's in addition to the $150 million already budgeted, and will allow community providers to build houses with upfront construction grants of 50 percent.
It will also allow providers to claim rent subsidies from the Government of up to 50 percent of the market rent.
Social Housing Minister Paula Bennett says the tight property market is affecting providers.
"This extra funding will allow community housing providers to create more medium- to long-term social housing, and faster, where the need is most acute," he says.
She says the new money will be spent on more one- and two-bedroom and large social houses.
Maori Party co-leader Marama Fox, who joined the Opposition's unofficial inquiry into homelessness, says she's learned a formula when it comes to Government funding.
"Whatever the Government is doing right now, add a zero.
"Add a zero and we'll be somewhere near the figure that's needed to make a real dent in the homeless crisis. We need to add another zero to the number of houses that are being built, we need to add a zero to the number of emergency housing provision, we need to add a zero to every part of this Budget to ensure we don't have this problem in 20 years' time."
There is an estimated 42,000 people across New Zealand classified as being in 'severe housing deprivation'.
Newshub.
