Affordable housing a priority for Palmy

Published on 21 September 2021

Artist's impression of the new subdivision in Whakarongo overlaid with words that say

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 Kākātangiata. This should unlock more than 20 years of development capacity by the end of next year.

Heather Shotter, Council CEO

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

Homes for People is looking at building medium density housing on the sections it will purchase. The detail of this will be worked through during the consenting process, however initial urban design work anticipates it 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.

Darren Burch, Homes for People

"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 its 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, has 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 and 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, is made available through its HomeSaver (rent then buy) and Home for Life (shared equity) assisted homeowner programmes.

To register your expression of interest in these homes, please visit

Public section sales will 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

We will provide a further media update when the sales process commences.