Wellington City Council is promising to find beds for hundreds of people who will have to move out of council flats as they are redeveloped.
The council has decided to demolish part of the Arlington Apartments complex and rebuild it, and then redevelop another area.
It estimates there will be 148 fewer beds afterwards.
Committee chair Paul Eagle said he hopes a private developer or community housing provider will get involved to provide more accommodation.
He said that might mean a mix of student housing, social housing and affordable apartments for sale.