Listen Now: 
March 17, 2026
#economy: Government faces mounting pressure over homelessness, housing performance and rising living costs
Dale Husband
Posted On March 17, 2026
Download AudioAs communities across Aotearoa grapple with rising homelessness, pressure on public housing and a deepening cost-of-living crisis, Housing Minister Hon Tama Potaka says the Government is focused on restoring stability for vulnerable whānau while improving the performance of key housing agencies.
The discussion comes as Rotorua moves ahead with its own local homelessness taskforce, highlighting growing frustration among councils and community groups that a stronger national response is needed to address the increasing number of people without secure housing.
Across the country, social service providers and local authorities say the number of whānau needing housing support continues to rise, with emergency accommodation services and transitional housing providers under sustained pressure. The move by Rotorua leaders to establish a dedicated taskforce reflects a growing view among communities that homelessness has become an urgent and complex issue requiring coordinated action between central government, local councils, iwi organisations and community groups.
Potaka says the Government recognises the seriousness of the situation and is continuing to work with local partners to improve housing outcomes. While councils and regional initiatives play an important role in responding to local needs, the Government is also reviewing the effectiveness of existing housing programmes and funding streams to ensure support reaches those most in need.
The performance of Kāinga Ora remains a key part of that wider conversation. The state housing agency has been under scrutiny in recent months as it implements a major turnaround plan aimed at improving financial sustainability, accelerating building programmes and strengthening tenancy management.
Despite those reforms, housing advocates say many families remain on waiting lists for warm, safe and stable homes. Community organisations working on the frontlines of housing support say the demand for social housing continues to exceed supply, particularly in regions where population growth and rising rents have placed additional strain on the housing system.
Potaka maintains the Government expects Kāinga Ora to deliver stronger results as the agency progresses through its reform programme. Improving delivery, increasing the availability of appropriate housing, and ensuring the agency operates more efficiently are seen as key priorities in the months ahead.
At the same time, the housing challenge is being compounded by wider economic pressures. The recent surge in global fuel prices, driven in part by instability in the Middle East and disruptions to international supply chains, is adding to the financial strain on households already facing high food, rent and transport costs.
For many low-income whānau, the rising price of petrol and diesel has a direct impact on everyday life, affecting the cost of commuting, groceries and essential services. The flow-on effects of higher fuel costs across freight and logistics are expected to push up the price of goods across the economy.
The Government has signalled that targeted support measures will remain a central part of its response to cost-of-living pressures, particularly for households on lower incomes. While broad tax changes such as reductions to fuel excise have been ruled out, ministers say assistance will continue to focus on those most vulnerable to economic shocks.
Housing, homelessness and living costs are increasingly being viewed as interconnected issues. Without stable housing, whānau face greater financial and social vulnerability, while rising living costs make it harder for families to maintain secure housing and keep up with everyday expenses.
Potaka says the Government’s priority is to restore stability and dignity for vulnerable households through a combination of improved housing delivery, stronger coordination with communities, and economic measures aimed at easing pressure on those struggling the most.
With winter approaching and global uncertainty continuing to shape fuel and supply costs, the coming months are likely to test how effectively those policies translate into real support for whānau on the ground.
RELATED NEWS
