Around one-third of people declined emergency housing receive no alternative housing support from the Ministry of Social Development, figures show.
The ministry confirmed approximately 70% of declined applicants are offered alternatives such as transitional housing, rent arrears assistance or bond payments for private rentals. That leaves roughly 30% with no recorded alternative.
The figures come two years after the government tightened eligibility criteria for emergency housing in 2024.
Government response
MSD client service support general manager Graham Allpress said staff do not leave people with nowhere to go. "Around 70% of people who are not granted Emergency Housing are offered an alternative housing support such as transitional housing, rent arrears assistance to help them stay in their current property or assistance into a private rental with a bond in advance payment," he said.
The ministry does not monitor individuals after they cease receiving MSD assistance. Applicants are not required to inform the ministry of their living arrangements after being declined.
Allpress later clarified: "To clarify our earlier statement - while we try to help people who are eligible with housing support there will be people who are not eligible."
Performance targets and policy debate
MSD managers operate under performance measures linked to lowering emergency housing figures. Auckland City Missioner Helen Robinson described the targets as creating a perverse incentive to decline applications.
Prime Minister Christopher Luxon defended the policy in Parliament, telling MPs: "Just because someone is declined for an emergency housing application, that means that they may be better ... not to go to a motel but to actually get into a house through transitional housing, social housing, rent arrears [support], and those sorts of things."
He added: "When people are in genuine need, there are genuine options available for people, and it may well be the assessment that we can use a social house, a transitional house, rent arrears, or a private rental as well."
The government has repeatedly said that emergency housing should be a last resort and that declined applicants receive support in other ways.
Homelessness trends
Labour leader Chris Hipkins questioned Luxon about homelessness policy during question time.
Luxon pointed to 2,400 children moved out of emergency housing motels and claimed his government has achieved better outcomes than Labour, citing more affordable housing, reduced rents, a decreased social housing waitlist and fewer children in motels.
Last month the housing ministry released a Homelessness Insights Report showing rough sleeper numbers in Auckland had decreased since September. But most councils told the ministry that numbers of people living without shelter had increased over the past six months.