Housing New Zealand says some tenants will be able to buy the homes they rent later this year.
In its statement of intent for the year, Housing New Zealand says its prime focus will be to upgrade its housing portfolio, rather than increasing the number of properties.
Housing New Zealand chair Pat Snedden says money from the sale of properties will be reinvested in buying or leasing state homes in areas of need.
Mr Snedden says the Hobsonville development, which will eventually add 3,000 new homes to the corporation's stock, is continuing.
He says a key part of its developments will be to provide affordable options for first home buyers.
Allowing tenants to buy the houses they rent is a long-standing National Party policy.