The slowdown in the building sector has left Auckland short of at least 6000 homes, with the greatest pressure going on South Auckland households.

The Salvation Army's 2010 State of the Nation report, A Road to Recovery, released today, shows the shortage is hitting South Aucklanders hardest with an additional 3000 homes needed to meet population growth. Analysis shows that as a consequence of the recession, one new house is being built for every 14 new residents in Manukau City.

"And this shortage is happening in communities that already had relatively poor housing conditions before the recession," The Salvation Army's Social Policy and Parliamentary Unit Director Major Campbell Roberts says.

Major Roberts says action is needed to stimulate the construction of affordable housing if New Zealand is to avoid expensive long-term social costs.

"The impact of overcrowded housing on unnecessary hospital admissions and high rates of movement of children between schools is clearly documented and well-understood," he says.

"We will be seeing these impacts this winter, and while the problem of overcrowding and lack of housing will take some years to address adequately, it is important that planning occurs now to provide new and affordable housing in Auckland," he says.

Population growth in Auckland has far outstripped residential construction, which has plunged to a 20-year low, forcing more than 20,000 Aucklanders to live in overcrowded conditions. Of the deficit of 6000 homes, 4000 emerged during the year to June 2009.

In the year to June 2009, Auckland's population was estimated to have grown by 21,800 people yet there were only 3200 consents issued for new dwellings to house this additional population. This means that one house was built for every seven new Aucklanders.

A Road to Recovery is The Salvation Army's third State of The Nation report. It tracks social progress across five critical areas: New Zealand's children, work and incomes, crime and punishment, social hazards, and housing.