Off-site manufacturing drives innovation and home build in Rotorua

Building and Construction Housing
  • Offsite build method used to drive innovation, maximise efficiency
  • 37 homes delivered through to 2023
  • Rotorua firm signed up to supply more OSM homes

The Government is driving innovation and ramping up progress in Rotorua with the first six of 37 homes delivered with the fast, modern, off-site building method known as OSM, Housing and Building and Construction Minister, Megan Woods says.

“The New Zealand housing and construction market faces some serious challenges, and we believe it's time for a new approach, and some forward thinking, to create more modern, precision built homes at pace and scale.” Megan Woods said.

“OSM homes have numerous efficiency benefits; they can be built and installed on sites faster than traditional builds, there are fewer variables, like constraints on materials, and there is less construction waste, making for happy and healthy, sustainable homes.

“Building more warm, dry, good quality homes is a key part of our Government’s solution to New Zealand’s housing crisis, and we are focused on improving the speed and efficiency of housebuilding to enable the many new homes the country needs.

“Not only is it an exciting time for the families who are moving into these first six homes, but it is also an important moment for Rotorua which is seeing more green shoots of progress. Since 2013 Rotorua has experienced a population surge of 9,000 people, while only issuing 1,500 consents. This Government is now working hard to help Rotorua fix this problem by pouring resource into the city.

“Across Rotorua around 300 public homes are under construction or being planned, and out of the Government's 10,000 additional public homes, 209 are in Rotorua. This is starting to unwind the damage done by the previous National Government who left Rotorua in 2017 with 44 fewer houses”.

“Rotorua is a priority for us and on top of our comprehensive house build plan we’ve funded additional infrastructure to enable over 3,000 additional homes,” Megan Woods said.

The previously vacant two hectare site on the corner of Ranolf Street and Malfroy Road in Rotorua was purchased in mid-2021 by Kāinga Ora and is being developed for public housing in stages.

The first phase comprises 37 homes, with six ready now, a further 19 to be completed by the end of the year, and the final 12 homes early next year.

The six homes have been built offsite in Huntly by Kāinga Ora build partner Builtsmart, one of the country’s largest suppliers of offsite manufactured homes.

The second phase is in the planning stages and is expected to include a further 20 multi-storey homes. 

These homes are in addition to a further 11 homes which have been completed in the past month, with a further 24 homes currently being built.

New contract signed with Rotorua’s Exeter Homes

Housing investment in Rotorua is being given a further government boost with contracts being signed between Kāinga Ora and Rotorua OSM business Exeter Homes.

“This is a good example of a local business, employing local people, working to provide innovative housing solutions for local communities, and across the wider region.” Megan Woods said.

12 OSM homes – seven for Rotorua and five for Ōpōtiki, will be delivered early next year, with a second order for around the same number of homes in the pipeline.

Notes to Editors:

Offsite manufacturing (OSM) is the construction of buildings and components of buildings offsite in a factory, which are then transported to the sites where they are needed.

The adaptability of OSM means this build method tackles some of the major challenges facing the residential construction sector, such as speed-to-market, cost, sustainability, health and safety, and skills and materials shortages. It can help deliver more homes effectively, affordably and sustainably.

Importantly, OSM homes meet quality and sustainability thresholds expected of a traditional build in New Zealand, including Healthy Homes standards and the New Zealand Green Building Council’s 6 Homestar ratings.

The Government’s programme to address the housing crisis

  • Major investment in rebuilding the public housing sector (10,000 additional homes and counting)
  • Interest limitation rule exemption for build-to-rent sector to enable the delivery of more quality, long-term rental supply..
  • Investment in Māori housing to deliver up to 1000 new homes, repairs and maintenance to 700 homes, and infrastructure support to enable for 2,700 home sites  ($730 million Budget 2021)
  • $3.8 billion for critical housing infrastructure like pipes and roads to enable new housing
  • Cutting red tape for urban development to encourage more new housing in areas where people want to live
  • Support for first home buyers; affordable homes, grants and loans and Progressive Home Ownership
  • Affordable Housing Fund to support new developments
  • Building Consent System review to unlock productivity and more affordable homes
  • Commerce Commission market study to pave way for fairer deal on key residential building supplies