UPDATED 9.19am Homeless people and state housing tenants in Auckland could soon find themselves in places like Lower Hutt or Palmerston North.

LISTEN ABOVE: Jan Tinetti, principal of Merivale School, in Tauranga talks to Mike Hosking

The Government has announced 150 families could be offered up to $5000 to resettle elsewhere.

MORE: Homeless Aucklanders could be offered up to $5000 to relocate

Green Party co-leader Metiria Turei said it's a half measure which will work for some people, while ignoring the majority.

"It doesn't house 30,000 families, it doesn't resolve the 4,500 families who are on the state house waiting list."

Housing New Zealand had more than 2500 empty houses on its books at the end of March this year.

But while that sounds promising, only 201 of them are actually ready for people to move into.

Auckland's got the highest number of empty state houses with 50 ready for tenants, followed by Lower Hutt with 32 and Palmerston North with 24.

More than 2300 houses can’t be let for a variety of reasons, including being earthquake prone, undergoing repairs or contaminated by methamphetamine.

The Mayor of Lower Hutt said life in his city is attractive to many.

"Life in the regions is far better than a very cramped city, which clearly Auckland is at the present time," said Ray Wallace.

Mr Wallace said jobs shouldn't be an issue for those considering a move to the city from Auckland under the Government's new plan.

"Regionally there's certainly been an increase in the number of jobs - unemployment is down which is good, so there is always that benefit."

Palmerston North Mayor Grant Smith said they have plenty to offer those considering relocating.

"We'll happily take new people that want to come here and contribute to our community."

Though he said the government must ensure it gives those relocating appropriate help once they've settled.

"There's got to be a little bit more of wrap round services for people. Have they got schools to got to. Have they got a community group to liaise with. Are MSD in behind them. There needs to be a little bit more than just moving them on."

Te Puea Marae chairman Hurimoana Dennis said the offer is more immediate, and a very sensible move:

"I'm not saying that there's work in these areas, there may be but there might not be. We've got to try something I think it's a reasonable strategy from the government."

Mr Dennis said there's more than one problem that causes a family to be homeless.

"You don't become homeless over night. You go through a series of unfortunate circumstances and stages, to the point where you just can't cope any more and your below the poverty line."

He said homelessness is another symptom of poverty.

However, the Salvation Army said moving homeless people and state housing tenants out of Auckland to the regions won't fix the housing crisis - and could actually be a bad thing.

Territorial social services secretary Major Pam Waugh said there's already a demand for housing in the regions.

"While Auckland has a huge issue, it's relative across the country, and if more people move into the regions that puts more pressure on the housing shortages out there as well."

Ms Waugh said homelessness is a very complex issue.

"Encouraging them just to move to another town is not going to be the easy solution for them, in fact it may be more detrimental to them."

Principal of Merivale School in Tauranga Jan Tinetti said there are more than 100 people living without basic shelter around her school.

"It's actually only addressing the issue the Government is saying is only happening in Auckland, and we've got nothing that's happening for our families as well."

She said the regions that are facing similar problems to Auckland are losing out.

"It's good for some people but it's not going to help my families, and it's not going to help Tauranga families, because they are not in Auckland."

Ms Tinetti told Mike Hosking in the last four-to-five months, she's had at least one family a week saying they need to get out of their house.

"Our houses are getting sold up we're getting probably speculators coming in from Auckland who can sell their houses and then afford to buy down in Tauranga. The rents are going up to a point where our families can't afford them anymore."

Queenstown's Happiness House coordinator Niki Mason said it isn't just in Auckland where people are suffering.

"I definitely think there is a lot need for some assistance in Queenstown for our families."

Ms Turei said moving people around won't solve the root cause of the homelessness - she said building more state houses is the better solution.

"We don't have enough state houses - the state house stock is falling every year because this Government keeps selling them off." 

Auckland's deputy mayor Penny Hulse said the move has to be thought through carefully.

"With families who have connections here in Auckland and opportunities possibly of jobs here in Auckland and sending them out to other regions raises some concerns. I would hope that there'd be no element of coercion."

Ms Hulse doesn't think the idea should be automatically dismissed and Paula Bennett should be given some support to explore it.

"But very much ensure that this is a choice that people are able to make without being pushed into this."