Housing NZ's latest quarterly report reveals the agency's portfolio of 63,276 houses had shrunk by 3922 since 2015, including by 1132 properties in the past year.
As the number of Housing NZ properties decreases, social housing waiting lists continue to grow, with 1476 more applications in 2017 than the previous year.
A Housing NZ spokesman said, despite having fewer homes, the agency had replaced outdated properties with new houses.
"During 2016/17 Housing NZ delivered a total of 1524 homes, including 1421 social, emergency and transitional homes, and 103 market and affordable homes."
The number of empty state houses had decreased, with 1592 vacant nationally in June, compared with 2486 a year earlier.
We've also committed $354 million for emergency housing the first time permanent funding has been committed, which will provided 8600 emergency places each year."
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