A new Social Housing Unit will work with the third sector to grow the amount of niche, social, and affordable housing in New Zealand.

The third sector is non-governmental organisations that provide social housing, such as Habitat for Humanity. The unit will provide these groups with funding, land, or excess state housing stock. Some third-sector organisations have delivered up to $3 worth of housing for every government dollar invested.

The Government has allocated $40 million to grow social housing this year, and the unit will determine how it is spent. Moving responsibility for third sector funding out of Housing New Zealand means it can focus on providing housing for those most in need, for the duration of that need.

This type of third sector programme works extremely well in the UK, where housing associations can meet local needs more efficiently than the Government.