New Zealand Government Approves Reset of Arlington Development to Deliver 104 Social Homes

The New Zealand Government has approved a revised plan for the Kāinga Ora Arlington development in central Wellington, which will deliver 104 new social homes and provide up to $6 million to Wellington City Council to support housing services for vulnerable residents. The reset follows a costly pause of the original 301‑apartment scheme, which saw costs rise from an initial $296 million to $419 million, prompting a redesign to a more cost‑effective model. The new plan will include 55 one‑bedroom apartments, 37 two‑bedroom apartments and 12 four‑bedroom terrace homes, offering a mix of smaller and family‑sized units in the Mount Cook suburb. Construction is expected to begin in 2027 and finish in 2029, subject to a detailed business case and council approval of a lease variation. The Arlington site remains owned by Wellington City Council and leased back to Kāinga Ora under a long‑term agreement. The $6 million grant will be distributed through the council’s community grants programme to strengthen local support services that help people access, sustain and thrive in housing. The project is part of the government’s strategy to address New Zealand’s housing shortage and infrastructure deficit by providing quality, fit‑for‑purpose social housing and maximizing the use of a well‑located site for additional homes.