More than 150 households have taken up the offer of financial help to move from Auckland to another part of the country.
Earlier this year the government introduced the grant, which included up to $5000 for relocation costs.
Social Housing Minister Paula Bennett said 65 households had relocated out of emergency or insecure accommodation.
"These aren't just numbers, they're real families we are supporting into more stable housing. The programme has also potentially freed up more than 100 homes for people in urgent need in Auckland," she said.
More funding will also now be made available, Mrs Bennett said.
"I'm very pleased to be able to extend funding of $1.95 million to the Relocation from Auckland initiative. This will enable a further 250 households to relocate."