Seventy-one public housing apartments have opened in Onehunga, replacing more than 30 terrace houses.
The Kāinga Ora development in Auckland was funded through income related rent subsidies.
There are a mix of one-and-two bedroom apartments, including seven which are accessible for people with mobility needs.
There is also a multi-purpose community space and a tenancy management office onsite.
The government expects tenants to include older people, those with mobility issues, small families and individuals.
Housing Minister Megan Woods said more developments like this one will be rolled out over the next few years, as part of the government's commitment to deliver 8,000 public and transitional houses in Budget 2020.
"A key priority of this government is to fix the housing shortage and we have the biggest public housing programme in decades," she said.
"We are well on track to fund and deliver a pipeline of 18,350 public and transitional housing places by the end of 2024.
"It provides people with secure, warm and dry homes, stimulates the residential construction sector, and creates jobs."