Affordable Housing A Priority For Palmerston North 

Affordable homes look set to play a role in the city’s newest subdivision, Tamakuku Terrace.

Palmerston North City Council is teaming up with local community housing provider ‘Homes for People’ in an effort to make it easier for residents, including first-home buyers, to secure a property at the James Line development.

Council has agreed to sell 20 of the 114 sections to Homes for People, who will build new homes for those eager to enter the Palmy property market.

The other sections available to the general market will also be a range of sizes and differing indicative values to address affordability and accommodate buyers at different stages of life.

City Mayor Grant Smith says it’s a great outcome and start in a challenging sector.

“We want to see more Palmerston North residents be able to own their own home, and this partnership will help start bringing that vision to life. It strikes a great balance for us to partner with Homes for People, a local group with a proven track record in the affordable housing space, whilst also delivering much-needed sections to the wider property market.”
Council’s Chief Executive Heather Shotter says Tamakuku Terrace is playing a pivotal role in the city’s housing market.
“We’ve all seen house prices skyrocket in the city over recent years, and that is partly down to the shortage of new housing supply. We are delighted to be releasing sections for sale, to assist with housing development in Palmy. As well as this development, over the coming months we will be consulting on District Plan changes to rezone significant new areas for housing at Aokautere, Ashhurst and Kakatangiata. This should unlock more than 20 years of development capacity by the end of next year.”

The two organisations are working through the contract, which is expected to be signed in the coming weeks.

tamakuku housing progress

Medium Density Housing

Homes for People are looking at building medium-density housing on the sections they will purchase. The detail of this will be worked through during the consenting process, however initial urban design work anticipates they could build upwards of 50 dwellings across the development. The homes will be spread across the two stages of the subdivision, and at different locations across the site. Homes for People co-founder Darren Birch says that it is great to get this partnership across the line.
“We trust our contribution will help Tamakuku Terrace to be recognised as an exemplary development of diverse and affordable housing. It’s wonderful that Palmerston North City Council has responded to the lack of affordable housing supply and taken proactive steps to help find solutions. We’re excited to work alongside Council in creating homes for lower-income households who are otherwise struggling to purchase their own home.”
He added Homes for People is a social enterprise with charitable status, so all of their surpluses are reinvested back into the community.
“This ensures that the best long-term community outcomes are achieved through our developments. Over the past five years, Homes for People, with the support of individuals in our community, have been able to deliver quality, warm homes, incorporating good urban design to first homeowners and people ready to downsize out of family homes. Our market-affordable homes, which have all been sold at low-quartile market prices, are helping new homeowners in Terrace End, Takaro, Roslyn, Highbury, Awapuni, as well as Ashhurst and Levin.”
Mr Birch says Homes for People exists to relieve poverty by developing affordable housing to help low-income people and households in our community by matching social impact investors with commercial and community partners to deliver new homes to qualifying homeowners. A selection of homes, including those at Tamakuku Terrace, are made available through their HomeSaver (rent then buy) and Home for Life (shared equity) assisted homeowner programs.

Public section sales are to start soon.

Over the coming weeks, we will be releasing information about the sales process for the remaining sections and start the tender process for the first grouping of sections. People interested in purchasing a section should register at

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