Nelson opens 38 new social housing units as demand for small homes surges
A new social housing development has opened in central Nelson, with Housing Minister Chris Bishop calling it a major step toward easing the city’s shortage of small, affordable homes.
Home in Place’s newly-completed 38-unit complex on Nile St was blessed on Thursday ahead of tenants moving in.
The development, built with Soho Group, includes 14 one-bedroom and 24 two-bedroom units ‒ the Auckland-based community housing provider’s first South Island project.
New tenant Kahlua Tauwhare has waited nearly three years on the Kāinga Ora transfer list and had been living in a safe house.
She was overwhelmed when shown her new home. “I had butterflies everywhere,” she said. “I’ve got a view, a balcony.”
Tauwhare said the location was a highlight. She would start studying across the road at Nelson Marlborough Institute of Technology next year, while living beside her granddaughter’s school was a bonus.
She was looking forward to the communal aspect, and felt relieved staff would be working on-site. “It gives me a sense of security.”
Bishop said 20,000 households remained on the national social housing register, including 280 in Nelson — down 5% in the past year.
Demand for small homes in Nelson was among the highest in the country, with 87% of applicants needing one or two-bedroom units, compared with 55% nationally.
Only 12% of existing state housing stock met that size, he said.
“They own these big houses all over the place, which was fine in the 1960s and 70s. That made quite a lot of sense, but we just haven’t been adjusting and pivoting enough over the last few years.
“The demand is really for one and two-bedroom units.”
Home in Place chief executive Larissa Bridge said most tenants would be in by next week, with all units occupied by Christmas.
“When people have secure, affordable housing, everything else becomes more possible,” she said.
Communal areas were designed to support connection between residents, while an on-site manager would provide day-to-day tenant support and respond quickly to issues.
She said the energy-efficient design such as solar and LED lighting were intended to keep living costs low.
Nelson mayor Nick Smith said the project came at a critical time for the city.
Housing pressures were driven by strong population growth, lower-than-average incomes and a “constrained geography” that pushed prices up.
“By accident of history, Nelson has half the number of state houses compared to the national average,” he said.
“With this development, and others coming, we’re seeing the biggest programme of new social housing our city has ever had.”
The complex sits beside the Category II-listed heritage Trinity Presbyterian Church purchased by Soho Group for just under $1.8 million in 2021, and recently put back on the market.
The company’s managing director Sam Wallace said turning the property into housing required significant design innovation.
“Proud is an understatement,” he said. “The creativity it took to turn this site into what it is, which was a church site, and to get a design that works, was huge.”
The Government has confirmed three further Nelson social housing projects to be managed by the Salvation Army: 39 units at the former Houston Motors site on Rutherford St and 15 units between Toi Toi and Hutcheson streets, and a 27-unit development at the Milton Chalet Motel site.
A Nelson Tasman Housing Trust survey released in September said that between January and June this year, 759 households were identified as needing affordable housing.
This was on top of the 423 households already on the public housing register in both regions, up from 405 in June.
By Nina Hindmarsh, Nelson Mail
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