The Minister of Housing is convinced that 6400 new state houses can be built within four years, despite the restrictions in the construction sector.
Phil Twyford said that today's plan outlines the largest public housing program in more than a decade, but he admitted that it was still not enough to make sure everyone who needed a home got one.
There are currently 8704 families waiting for a state house, and another 1885 families are already in a state house, but are waiting for a transfer.
"It's never enough … and it will take a few more years to solve this problem," said Twyford.
Community housing Aotearoa welcomed the plan, but said it was given far too little than there were more than 10,500 families in the register of social housing.
Chief executive Scott Figenshow said that the Public Housing Plan published today is disappointing in the small number of housing units financed.
"We are always impressed by the quantity desired by the government, because it will not affect the real demand for social housing and will not activate the capacity of the community housing sector.
"That said, our expectations for this plan were low because of the lack of investment in the budget for May 2008. We want the government to invest significantly in this plan in the 2019 budget," said Mr. Figenshow.
More than half of the new homes financed in this year's budget would be built in Auckland, with Wellington receiving more than 700 in 2022.
The east coast would have 330 new homes and Canterbury 480.
Northland's Tai Tokerau Emergency Housing Trust has welcomed the announcement that the region will have 180 new state houses by 2022.
President Adrian Whale said the region had waited a long time for the housing assistance it needs and the plan for 180 new homes was fantastic news.
Housing New Zealand has adapted the way it concludes contracts and houses new houses in such a way that the objectives can be met, Twyford said.
"Housing New Zealand cooperates with a number of preferred suppliers, it has achieved major efficiency gains in the way it builds houses and reduces costs, and it uses more and more prefabrication on location.
"I am confident that we will achieve these goals."
Many of the new homes would be filled with homes built on existing land owned by HNZ, most of which are one to two bedrooms, with a number of four-bedroom homes for larger families.
"One of the ways we will find our way out of this housing crisis is to deal with land more efficiently." Density is the future, "he said.
In addition to budget funding, Housing New Zealand will borrow another $ 2.9 billion from third parties and take another $ 900 million of its operational financing to pay the new homes.