The Government is planning to build 34,000 new homes in Auckland over the next decade.
Social Housing Minister Amy Adams made the ambitious announcement on Tuesday which will be done as part of the Crown Building Project.
It'll mean 8300 run down houses will be replaced with 34,000 homes.
Of those, 24,300 will be built by Housing New Zealand through their Auckland Housing Program and will be a mix of apartments, houses and terraced housing.
Ms Adams says the project will deliver 13,500 newly built social housing and 20,600 affordable and market homes.
In making the announcement, Ms Adams called the project a "significant undertaking" the equivalent of building three-and-a-half new houses on every street in Auckland.
"These houses will be for our most vulnerable families, for first-home buyers, and for the wider market. We are building more social houses for Aucklanders and helping provide a pathway into independent, affordable housing," she says.
But Labour leader Andrew Little says the announcement is "simply not a credible response to the problem [National's] been in denial about it for so long."
"National can't now claim to be tackling the housing crisis four months out from the election when, for nine years, they've ignored the plight of first home buyers and families in need," Mr Little said today.
He reinforced Labour's promise to build 50,000 new homes in Auckland, as well increasing supply of state houses.
"National hasn't a shred of credibility left" he added.
The first part of the plan will take place over the next four years and will cost $2.23b though HNZ's existing budget and new borrowing of $1.1b approved by the Government.
The second phase will be funded through the market housing development part of the programme and rental returns.
HNZ will also keep its dividends and the proceeds from the state house sell-off to fund the building programme.