The Government is considering a major reorganisation of state housing, saying Housing New Zealand homes aren't meeting modern day needs.
The changes are among recommendations made by the Housing Shareholders Advisory Group, which has reviewed the provision of state housing.
Housing Minister Phil Heatley says 10,000 people are on state housing waiting lists but too many homes are the wrong size, or in the wrong areas.
He says other state house tenants could afford to rent privately and the Government is looking at how to move these people on.
Mr Heatley says that may involve the introduction of tenancy reviews.
He says the government is also considering a greater role for community housing groups in the provision of homes for those in the greatest need.
Mr Heatley says vulnerable groups such as the infirm or the elderly won't be disadvantaged by any changes.