The Government's unveiled six new homes in Rotorua as it ramps up public housing in the city.

Thirty-seven pre-fabricated homes will be built over the next year, with the first family moving in next Wednesday.

Housing Minster Megan Woods told 1News the homes will provide a warm, safe place for children.

"They will be able to finish at their local school, it's a place to put down roots, and it's a place to make memories."

The off-site manufactured homes were built in Huntly and transported to Rotorua, and Exeter Building Company has picked up a contract to build the houses locally.

“Across Rotorua around 300 public homes are under construction or being planned, and out of the Government's 10,000 additional public homes, 209 are in Rotorua.

"This is starting to unwind the damage done by the previous National Government who left Rotorua in 2017 with 44 fewer houses,” Woods said.

However National's Housing spokesperson, Chris Bishop, says today's announcement isn't anything to celebrate.

"Rotorua's got a housing crisis we've got hundreds of families living in motels in Rotorua, six new offsite manufactured homes just isn't going to cut it", he says.

Exeter Homes managing director Chris Travis says the company will build as many homes as they can.

"So we're building about 24 a year at the moment. We've been toying with the idea of doing a house a week it's up to KO (Kāinga Ora) really with how many they want," he said.

Kāinga Ora regional director Darren Toy says the demand for public housing in the region is large.

"We've got over 1000 whānau on the waiting list for a warm dry home."