Older state homes making way for new housing in Mosgiel
23 Poutūterangi 2026
We are transforming older state homes in Mosgiel, replacing them with warm, modern housing on the same sites.
Across five sites, 31* new homes are being built where just 11 once stood, nearly tripling the number of homes available for local whānau. By making better use of the sites we already own, we can provide more homes for families that are near to the services and amenities they rely on every day.
On one of the sites, six new homes have recently replaced two older properties. These homes are now providing warm, dry, healthy homes for whānau in need, including one family who were left homeless after a devastating fire earlier this year destroyed their private rental and all their belongings.
Grace says moving into a new four-bedroom home with her four children earlier this month has given her whānau a fresh start after the fire and a sense of hope for the future.
“We spent some time in transitional housing, and when a Kāinga Ora staff member rang to say they’d found us a house, I could hear the excitement in her voice,” she says. “She was so happy for us, and it meant a lot to feel that support.”
Friends and wider community members rallied around the family after the fire, setting up a Givealittle page and donating items that helped Grace replace essential household goods and clothing.
Grace says the new home is a perfect fit for her family’s needs: “It’s just a beautiful house, and it suits us really well,” she says. “After what we’ve been through, I really appreciate the safety features, especially the fire alarm system. It gives me peace of mind.”
“We feel incredibly lucky. This home has given us a chance to start over, and we’re so grateful.”
Soon, new social housing in Mosgiel will also be completed in:
- Doon Street / High Street: 8 new homes are replacing three older homes.
- Doon Street (north‑east): 3 new homes replacing one ageing home.
- Stirling Crescent: 3 new homes are replacing one older home.
- Gretna Place / Doon Street: 11 new homes are replacing four older homes.
“We have a number of older homes on larger sites in Mosgiel, and we are working to renew these in areas where the District Plan allows for increased housing density, such as the ‘Arthur Burns’ neighbourhood,” says Liz Krause, Regional Director for Otago and Southland.
“The new homes we’re building will give our tenants warm, dry and healthy places to live that better suit their needs, now and into the future.”
“These homes are being delivered using our standardised design plans, which allow us to build faster and more efficiently. The designs feature practical layouts that make the most of the available space and support the day-to-day needs of our tenants,” says Liz.
You can find more information about the work underway, including dates and times for upcoming open homes on our Mosgiel development page(external link).
*This is in addition to the 105 new homes which have been delivered in Mosgiel over the past four years.
Media Contact
Kua whakahoungia te whārangi: 23 Poutūterangi 2026