The analyzing shifts in policy requires us to appreciate that they are embedded in the past as well as in the present.   It is important that the development of New Zealand housing strategy for the 21st century requires us to understand both the past transformations and the future predictions with respect to the shape of New Zealand future population, tenure shifts and increasing diversity in housing strategy of New Zealand. Housing policy of past  was reshaped, as part of the wider restructuring of New Zealand’s welfare state, economic strategies and social policies that took place at that time and at the beginning of the 1980s the New Zealand was coming to the end of a quite sustained period of extensive social and economic intervention initiated by the Labor government of the 1930s.

Further more the Housing Corporation and a multipurpose organization both  are funded and provided escaped extensive restructuring the resistance to reforming the housing sector. It is a reflection of strong institutional resistance from the multi-purpose Housing Corporation and the sensitivity of the Labour Government to the political implications of further radical reform  and in 1992 The Housing Restructuring Act was also introduced in New Zealand.