The Housing Minister says the opening of a new 12-unit Housing New Zealand complex in Christchurch shows the housing recovery is progressing well.
Nick Smith, who was in the city on Tuesday, said Housing New Zealand aimed to repair 5000 quake-damaged housing units in the city, and build 700 more, by the end of the year.
He said there were many pressures on the housing market.
"Not only do you have 13,000 houses that have to be replaced, you've got another 30,000 that are damaged sufficiently badly that you need to have temporary accommodation for those families while those homes are rebuilt, and then on top of that you have about 5000 workers that have come to town that also need accommodation."
Dr Smith also announced formal invitations to private sector groups interested in working on two new housing developments in the central city that would provide 450 temporary, affordable homes.
There was no magic solution to Christchurch's housing challenge, but this was another step forward, he said.