Kāinga Ora is focused on bringing down its building costs going forward.
The Government is taking aim at its pricing - saying it is refocusing the state landlord on basics.
A new review judged Kāinga Ora was paid about 12 percent more for building houses, when compared to the market.
Chair Simon Moutter says the costs were partly due to higher design specs than needed.
"Social housing does require some features that normal market housing doesn't - but it doesn't need to cost hundreds of thousands more, it should only cost low tens of thousands more."
The Government's turnaround plan for Kāinga Ora includes cutting a quarter of its staff, removing new-home sustainability requirements and selling off high-worth state homes.
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