Demolition of the 16 state houses in Carroll St has been completed in order to make way for a new 40-property development on the same site.
Southern regional director Kerrie Young said subject to the consenting process, the site would be developed to provide two buildings holding a mix of one- and two-bedroom homes.
The proposed development comes amid rising demand for housing in Dunedin.
According to the Ministry of Housing and Urban Development, there were 435 people in Dunedin on the housing register as of August—an increase of 20 people since June.
There were also 87 people on the transfer register.
Ms Young said when the site was earmarked for redevelopment, they supported all the customers who were living at the Carroll St site to find alternative Kāinga Ora homes.
This was their usual process when they considered redeveloping a site, and was completed before any work started, she said.
"Once construction of the new homes is completed, Kāinga Ora will match the homes to individuals and families on the Ministry of Social Development Housing Register," Ms Young said.
"We may also match some of our current customers to the homes."
Ms Young said about 25% of the homes in the new development could be adapted to be accessible for people of all abilities, at any stage of life.
Ms Young said once the consenting process was complete and the plans were finalised, they would be able to provide an estimated cost for the project.
