Fourteen new homes to support housing affordability in Nelson

A new Habitat for Humanity Nelson housing development in Stoke, Nelson, will provide immediate, affordable, and secure tenure to fourteen families needing housing.

South Island funder Rātā Foundation has partnered with Habitat Nelson to develop the Stoke and Wakefield Houses, with another thirteen scheduled for completion later in 2023, five in Richmond, and another eight in Stoke, bringing the total to thirty new homes. Rātā has contributed $750,000 to the housing project.

Nick Clarke, General Manager of Habitat Nelson, says, "Rātā support of Habitat enables us to assist more people into decent homes and provides a hand to those who need it. Ultimately, this leads to healthier, more robust, and more engaged communities. We are delighted to work together to realise that goal."

The Stoke development consists of twelve townhouses for home ownership and two units designated as social rentals. These homes, comprising two one-bedroom, six two-bedroom, and six three-bedroom units, will provide a secure and affordable housing solution for low to moderate-income families through Habitat's Progressive Home Ownership (PHO) Programme. Another three homes are also under construction in a separate development at Wakefield.

The new townhouse community will offer numerous advantages, including shared spaces and support, in a central location surrounded by family facilities such as a playground, barbecue area, shared workshop, and garden with bike and car parking.

Chief Executive of Rātā Foundation, Leighton Evans, says, "This development is a great example of a partnership that will deliver good quality public housing in Nelson. These new homes will provide security of tenure, a healthy living environment, stability for each family, and a sense of community that will have long-term benefits."

The housing project addresses many barriers aspiring homeowners face in the region, including fear, rental market challenges, cultural differences, financial constraints, and residency requirements. It aims to empower individuals and families to overcome these obstacles and achieve homeownership.

Mr Evans says, "The project provides support, guidance, and affordable housing options that increase rental availability, bridge cultural gaps, enhance financial literacy, and streamline residency processes. By addressing these challenges, the project is creating a more inclusive and accessible pathway to regional homeownership".

Applicants for the Habitat Nelson housing project must demonstrate a genuine housing need and be ineligible for conventional mortgages. Regular paid employment and a substantial level of investment are also prerequisites. Only applicants residing in the region are considered for selection.

Chlōe Howarth, Habitat Nelson's Business Development Manager, says there were 88 applicants for the Stoke housing development showing the scale of demand. 

"Thirty-one percent of our Stoke applicants had saved less than $5000 for a deposit, and only 9 out of the 88 applicants had savings higher than $20k. They didn't have enough savings for a deposit, so they could not purchase a house in the private market without Habitat Nelson".

"Twenty-one percent applied for the PHO programme due to current poor living conditions, 22% due to financial hardship, and 28% due to stability and security. Well-being and opportunity for their children motivated many," says Ms Howarth.

19% of applicants spent 40% or more on their income, and 43% spent above 30% on rent.

Selected partner families have expressed their excitement and gratitude for the opportunity.

Tanja, a future homeowner, says moving to the house is a wonderful opportunity. "I had been worried about the future, and it all still feels unreal. I'm excited to have a community that will provide support and a family feel."

Tita and Veni, another selected family, say one of their main goals this year was buying a house. "Moving to the Habitat House means everything to our family. We are excited by the opportunity to rent to buy, not putting the money through to someone else."

Ms Howarth says Habitat Nelson, alongside Rātā, is excited to provide these quality homes for community families who would not otherwise have the opportunity to own their own homes.

"We recognise the urgent need for affordable housing in Nelson and are committed to building not just houses but sustainable communities."