Housing Minister Phil Twyford has announced a major housing development in central Auckland.

The site on Unitec Polytech's current campus in Mount Albert will be home to between three and four thousand new homes.

Mr Twyford says Labour inherited a mess.

The project will include over 1000 homes built under the Kiwibuild scheme, which means they will be priced at between 500,000 and 600,000 dollars.

He says they have had to start from scratch to build the platform for a massive Government back building programme.

"We're going to throw everything including the kitchen sink at this problem, no stone will be left unturned because the crisis is so bad in New Zealand it requires ambition."

Mr Twyford told TVNZ's Q&A programme the Government is looking to the private sector to help fund the development.

"What's becoming clear is that there are opportunities for instance to bring private capital in, so we are exploring that now to see whether or not we can create a fund that would sustain a shared equity program."