Social Housing Delivers Threefold Return On Investment

Every dollar spent building and operating social housing generates nearly $3 in return for society, through reduced health costs, stronger employment outcomes, better educational attendance and more stable communities. Every dollar not invested carries a cost to society of approximately -$0.25.

This is one of the key findings from a report released today by Te Toi Mahana - Wellington’s largest residential landlord and leading provider of affordable homes. The report, Delivering Value: The Economic Impact of Social Housing, quantifies the costs and benefits of social housing, and reveals the significant benefits for tenants when compared to private rentals, such as less time in hospital and more time in stable work.

“There is a difference between having a cost and being one. At a time when financial pressures are felt across the country, instinct and intuition are simply not enough. This research makes clear that housing tenants in our homes is not a cost but a value-generator,” said Chief Executive of Te Toi Mahana, Jonathan Manns.

“Our homes enhance life outcomes, drive economic growth and deliver significant welfare savings. This benefits the rent-payer, the ratepayer and the taxpayer.”

The research also shows that investing in social housing delivers local economic and productivity benefits, while reducing public infrastructure costs.

“Every new social home we build generates more than $60,000 in economic benefits for residents and the local community, while reducing public infrastructure costs by more than $10,000,” said Jonathan Manns.

“These findings present a clear case to support further investment in social housing,” said Andrew Little, Mayor of Wellington. “While the vehicle for delivering social housing continues to evolve, the value of housing has not. I hope this report prompts more thinking and action focused on providing better housing outcomes for all Wellingtonians.”

The report comes after a period of continued housing pressure in Wellington which hinders the city’s ability to attract and retain talent. The number of overcrowded homes in Wellington City increased from 2,950 in 2013 to 3,760 in 2023: an increase of 27%. If no action is taken, by 2053, the research projects that Wellington will have 5,100 crowded households, of which about 1,000 will be considered severely crowded.

The report has been released shortly after Te Toi Mahana began construction of its first new housing in Crofton Downs, which will deliver 23 new homes for whānau in Wellington, and a week before the organisation is set to tender for its second development of 36 new homes in Tawa. These mark the first steps towards the organisation’s goal of delivering a further 500 affordable homes over the next decade, with this report demonstrating the scale of benefits that could accrue to society from that investment.

About Te Toi Mahana

Te Toi Mahana is the largest residential landlord in Wellington and leading provider of affordable homes. Established in August 2023 as an independent, charitable community housing trust, Te Toi Mahana represents an exciting change in how social and affordable housing is delivered in Pōneke.

Our vision is a future where everyone in Pōneke who needs a home has one. We provide some 2,000 warm, dry and safe homes and highquality tenancy services to approximately 3,000 tenants throughout Wellington.

More information can be found at www.tetoimahana.org.nz

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