Rotorua Ends Contracted Emergency Housing Motels, Rehomes All Families

The Government has officially ended the use of Contracted Emergency Housing (CEH) motels in Rotorua, taking the number of households in CEH from its peak of over 240 households across 13 motels under the previous Government down to zero today, Associate Housing Minister Tama Potaka says.

For years Rotorua became the poster child of a broken emergency housing system, Mr Potaka says.

At its worst, entire stretches of Fenton Street were lined with emergency accommodation motels. Crime surged, families were moved around like luggage, and Rotorua was left to carry the social, economic, and reputational damage of a system that had completely lost control.

Our Government promised change. We set a clear target to shut down Rotorua’s CEH motels by 15 December 2025.

Mr Potaka says the turnaround reflects deliberate, coordinated action across Rotorua.

Rotorua whānau, businesses and mana whenua had been pleading for change for years. We listened and acted. We have restored safety, dignity and confidence to a city that was forced to absorb the consequences of a failed housing model.

HUD and MSD partnered with Visions of a Helping Hand, WERA Aotearoa Charitable Trust, Emerge Aotearoa, Ngāti Whakaue, Te Arawa, Restore Rotorua and the Rotorua Lakes Council to move every household into stable, secure homes.

Referrals into CEH motels ceased on 15 June 2025, and agencies have since worked intensively to secure permanent placements.

With the last families rehoused, the remaining CEH motels are now preparing to return to the commercial, Mr Potaka says.

Rotorua is finally back on the front foot, it is safer, stronger, and open for growth. Our Government will keep backing Rotorua to reclaim its reputation, grow its tourism economy, strengthen its housing supply, and unlock new opportunities for the city.

This progress builds on the Whakaue-Government partnership delivering 80 new affordable rental homes at Manawa Gardens, alongside the earlier 80 completed in 2024. By increasing long-term supply and moving families into warm, secure homes, Rotorua finally has more sustainable housing pathways.

Notes for Editors: There is information about housing in Rotorua on HUD’s website here, noting that the Rotorua Temporary Housing Dashboard- September is superseded by the information provided above https://www.hud.govt.nz/our-work/rotorua-housing-accord