A community group in the Lower Hutt suburb of Pomare, where 88 state houses were demolished last year says most of the former residents won't be able to afford the new houses going up.
Housing New Zealand has announced that City Living will head the redevelopment project. About 80 houses will be built and it is likely that more will follow.
Up to 20% will be state housing, and the rest will be rental housing and private ownership.
City Living estimates about 40% of the houses will have a price tag of about $350,000.
But Pomare Community Voice spokesperson Dina Awarau says the new houses will just not be affordable for those community members.