Almost a quarter of the young people on the social housing register are to be housed in a new accommodation service as part of the Government's Social Housing Reform Programme.
Up to 21 young people aged between 16 and 19 will be housed for as long as they need it by community providers in Palmerston North, Christchurch and Auckland.
Minister for Social Housing Paula Bennett said this was a way of ensuring access to education and employment, and getting them self-sufficient.
She said they would be living in two to five bedroom houses with ready access to adult support.
Ms Bennett said the support would target young people who could not live at home.
"They will be kids that are coming off the streets in some cases, in others out of Child Youth and Family and they need extra assistance and are unable to secure safe accommodation themselves."
Ms Bennett said it was about trying to provide them with more services and a roof over their heads.
As of June this year, there were 82 young people on the social housing register.