With housing affordability continuing to challenge communities across New Zealand, the Whanganui District Council is taking proactive steps to address local needs.
As part of its Draft Annual Plan 2025/26, the council is seeking public feedback on a bold new proposal: the creation of a standalone housing entity dedicated to delivering affordable and accessible homes in the district.
Councillor Kate Joblin, the council’s housing spokesperson, says the move reflects both the urgency and the scale of the housing challenge Whanganui faces.
“Right now, the demand for affordable housing is outpacing supply,” Kate says. “We have an ageing population, a private market that’s struggling to keep up, and a growing need to partner with others to make sure every resident has access to a warm, dry, and suitable home.”
Currently, the council owns and operates 276 housing units for older persons across 16 complexes. While the portfolio has long served the community, many units are ageing and no longer meet modern housing or accessibility standards.
These homes are funded entirely through rental income, with no contribution from ratepayers or central government, a model Councillor Joblin says is increasingly unsustainable.
According to council estimates, Whanganui will require approximately 1,000 new homes over the next decade to meet future demand, particularly in the area of housing for older persons. The cost of delivering such a volume is estimated at around $300 million, well beyond the council’s current financial capacity.
To address this, a business case put forward by the council recommends establishing a standalone housing entity. This independent organisation would focus solely on providing social and affordable housing in Whanganui.
The proposed entity could partner with government agencies, iwi, community housing providers, and private developers, leveraging external capital and funding streams not currently accessible to the council.
“By establishing a dedicated housing entity, we can unlock new resources, reduce costs, and scale up delivery,” Kate says. “It gives us the flexibility to build modern homes, while keeping them affordable for those who need them most.”
During the public consultation phase, council staff and elected members are engaging directly with residents across all 16 housing complexes. Their goal is to ensure tenants understand the proposal and have an opportunity to raise questions or concerns.
“In the short term, nothing will change for our tenants,” Kate says. “If a standalone entity is created, further consultation will take place before any part of the housing portfolio is transferred. Ultimately, this approach will improve the quality and funding of our housing stock, ensuring better outcomes for everyone.”
Importantly, the council is also making it clear that the new entity would remain focused on older persons’ housing, with no plans to convert the complexes into mixed-tenure social housing.
Instead, the aim is to deliver warm, accessible, purpose-built homes at an affordable price point for Whanganui’s most vulnerable residents.
