Updated 3.26pm: Thousands of new state houses are to be built in the Auckland suburb of Tamaki.

Finance Minister Bill English has announced 7500 homes will be built over the next decade in his annual speech to the Auckland Chamber of Commerce and Massey University.

He says it'll represent a net increase of about 5000 after accounting for removals and demolition of older properties.

Bill English says there will be a mixture of new houses for the Auckland market.

"You'll probably get a range. Social housing we need, so called affordable housing, and there will probably be some higher value stuff. The economics of it need to work, we've got to be able to pay for it."