A PricewaterhouseCoopers report on leaking homes shows the problem is much larger than previously acknowledged.
The Minister for Building and Construction, Maurice Williamson, released the report on Tuesday.
It estimates about 42,000 homes could be affected and puts the total costs of fixing them at $11.3 billion in 2008 dollars.
Mr Williamson says the blame game of who is responsible has gone on too long and the Government is bringing together a package to help home owners repair their homes and move on.
Rescue package due next year
The Government says it will put forward an assistance package for leaky home owners to Cabinet in the new year.
Mayors from six cities with the most leaky homes met the Minister last month, but were unable to agree on a plan and are not contributing to the Government's package.
Mr Williamson told Checkpoint the Government will guarantee loans so that people can get a loan from their bank. And he says home owners will still be able to take action through the courts to try to get liable builders or local authorities to pay them back for the repairs.