84,000 households face higher rents under the government's major social housing shake-up

Pacific families living in social housing are being urged to prepare for higher rents as wider changes to the housing system move ahead.

This comes as the Government rolls out what housing leaders describe as some of the biggest social housing reforms in decades.

From April 2027, social housing tenants will see their rent rise from 25 per cent to 30 per cent of household income.

The change is expected to affect around 84,000 households with rents increasing by an average of about $31 a week.

The Government says the move is part of a wider plan to make the social housing system fairer and encourage people who can move into private rentals to do so.

Housing Minister Chris Bishop has argued the current system is unfair because some social housing tenants are financially better off than people renting privately while receiving accommodation support.

Housing Minister Chris Bishop has defended the changes, saying the current system is not working fairly for all tenants. Photo/National Party

The Government says the extra money collected through higher rents will help fund increases to the Accommodation Supplement for low-income private renters.

But community housing providers warn that the changes could place extra pressure on families already struggling with the cost of living.

Speaking to William Terite on Pacific Mornings, Paul Gilbert, the chief executive for Community Housing Aotearoa, said many households would feel the impact immediately.

Community housing leaders say many households could feel immediate pressure as rent rises are introduced in 2027. Photo/Salvation Army

“Next April, our staff in the community sector and the staff of Kainga Ora are going to be going to their social housing tenants and saying, sorry, we need to put your rent up 20 per cent in the middle of a cost of living crisis.”

Gilbert said the sector was particularly concerned about how the changes would be introduced.

“A 20 per cent increase on day one, 1st of April next year is a very high threshold for people who are choosing between feeding the kids or paying the rent.”

He also questioned the evidence behind the policy.

“Not seen it. If there is, I would like anyone who's got that evidence to pass it my way, please. I've never seen that reported anywhere in the world, no.”

Gilbert said the reforms could significantly change the role of social housing.

Around 84,000 households are expected to be affected by the shift in social housing rent settings. Photo/AWHI Housing

“What they're doing is they are fundamentally changing the nature of social housing by narrowing down the definition of who is eligible and who is not.”

The Government has already signalled it is considering tighter eligibility rules, more regular tenancy reviews and possible limits on how long some tenants can remain in social housing.

Ministers say the goal is to ensure support reaches those with the greatest need and to help others move towards independence where possible.

Gilbert said community housing providers have concerns about those proposals and want to be involved in discussions about how they will work in practice.

“It's one of the most significant social housing reforms in decades.”

He said the immediate focus for Pacific households should be understanding what the changes could mean for family budgets.

Listen to Paul Gilbert's full interview below.

“We've already started talking to our tenants that we house within the community sector, but many of your whanau will be in Kainga Ora homes.

“And so I'd suggest they speak with their tenancy managers.”

Gilbert said some providers are encouraging tenants to start setting aside money now, ahead of next year's increase.

“What we really need to start doing in some cases, what our providers are encouraging people to do is to start putting away a little bit of extra money and start saving for that.”

As details of the reforms continue to emerge, many Pacific families will be watching closely to see how the changes affect both the cost of housing and access to support in the years ahead.