The Salvation Army says building 150 state homes is only a small step in solving the problem of homelessness.
The Government yesterday announced the houses will be built in the regions by June.
The Labour-led government has previously promised to build at least 1000 state houses a year.
The mostly one or two bedroom homes will sit on Housing New Zealand's vacant land in areas ranging from the far North down to Invercargill. Napier/Hastings will get almost 50.
The Salvation Army's emergency housing director, Lynette Hudson said more support is needed for families experiencing housing instability.
Transitional housing for about 200 people was opened in South Auckland yesterday and will be managed by the charity.
Ms Hudson said those people will be supported for about three months to find longer-term homes and financial stability, and to address the issues that caused them to become homeless.
She said the same help is needed for the families placed in the new state homes - and that many more such homes must be built.