This paper utilises two politically determined natural experiments affecting state-provided social housing to examine the impact that housing tenure status has on neighbourhood outcomes. From 1990, New Zealand’s National government sold a substantial number of state houses either to existing tenants (Home Buys) or to other purchasers (vacant sales). From 1999, the Labour government ended Home Buys, reduced vacant sales and increased acquisitions. While vacant sales had no material effects on local outcomes, a higher prevalence of Home Buys led to increased local house price appreciation despite demographic trends that would otherwise have led to falling relative house prices in those communities.