The cheapest home now costs $50,000 more after the developers, Hobsonville Land Company, successfully argued that their material and labour costs were too much to bear.
It has also emerged that the development company sought even higher prices, but was turned down by the Government.
Building and Housing Minister Nick Smith said the Government had been open about the inevitability of increases.
But Labour’s housing spokesman, Phil Twyford, said the increase was not fair as Kiwis simply could not save fast enough to get a foot on the property ladder.
The new “affordable” homes will now be priced at $450,000, $500,000 and $550,000, the last now in line with the Government’s recently announced