Community Housing groups say the Government's commitment to build or alter thousands of homes needs to be just the starting point for fixing the housing shortage.
The Government has announced $377 million will be spent on converting some three-bedroom state houses into four or five bedroom properties, and building 500 two-bedroom homes.
The Monte Cecilia Housing Trust in South Auckland says the plans must be part of a long term approach.
It says the problem is much bigger than overcrowding in state houses, as many families can't get a state house or afford private rentals.
Habitat for Humanity agrees the work is a good first step, but wants the Government to consider building in established communities rather than setting up a neighbourhood of state houses that will attract crime.
Mangere Budgeting Services chief executive Darryl Evans told Radio New Zealand's Morning Report programme the plans are a good start to alleviating overcrowding.
But he says there is no mention of addressing the high demand for one-bedroom homes, nor for helping those facing exorbitant rents in the private sector.
The director of the Salvation Army's Social Policy unit, Major Campbell Roberts, told the programme the Government needs to look comprehensively at child poverty, not just provide food in schools.
Details of the plan will be announced in the Budget on Thursday.
