Wool carpet now standard in Kainga Ora new builds

Kāinga Ora has switched to using wool carpet in all new builds and some replacement projects following a revised procurement process that opened bidding to both wool and synthetic carpet suppliers – and wool won out 

Following a shift in procurement policy, from 1 July 2025 builders working on Kāinga Ora projects are required to install wool carpet in all new state homes, as well as in existing properties that require full-house recarpeting. 

Builders can continue using Nylon carpet for partial replacements in existing homes where nylon carpet is already installed, to maintain consistency and manage costs. 

The move follows a revised Request for Proposal (RFP) process that opened tenders to both wool and synthetic carpet suppliers. Kāinga Ora Chief Executive Matt Crockett said the updated supply arrangements reflect a robust procurement process and deliver value for money. 

“We listened to market and public feedback and decided we should give wool suppliers the opportunity to bid,” Crockett said. “We were pleasantly surprised to receive new bids that were price competitive. All credit to New Zealand wool suppliers for rising to the challenge.” 

The updated procurement process led to a $2 million contract awarded to New Zealand wool manufacturer Bremworth. Over the three-year term, wool carpet is expected to be installed in around 900 planned state housing projects each year. 

Bremworth CEO Craig Woolford said: “the inclusion of wool is a win for New Zealand’s farmers and future tenants of these homes”. 

Kāinga Ora is New Zealand’s largest residential landlord and initially sought bids from synthetic-only suppliers in an earlier RFP. The decision drew widespread criticism from both government and industry, including Associate Agriculture Minister Mark Patterson, who called it “beyond disappointing”. The backlash prompted the agency to revisit its procurement approach. 

Change welcomed by ministers and industry 

The shift has been welcomed by Economic Growth Minister Nicola Willis, who said the outcome showed the value of reopening the procurement to wool. 

“When wool was put back on the table it more than held its own, delivering value for taxpayers and a win for sheep farmers,” Willis said. 

She added that the move aligns with broader government efforts to back the wool sector through public procurement policy. 

“The Government wants wool producers to have more opportunities like this, which is why in March we issued a directive to 130 Government agencies requiring them to purchase woollen products for building construction and refurbishment, wherever practical and appropriate.” 

Mark Patterson also backed the decision, after criticising the original synthetic-only approach. 

“Woollen fibres create safer, healthier and more sustainable living environments for families,” he said. 

Federated Farmers meat and wool chair Toby Williams welcomed the move, calling it a critical intervention for the struggling wool industry. 

“Our wool industry is in major freefall, and this move from Kāinga Ora is the parachute we desperately need,” Williams said.