Efforts to increase housing supply in Nelson took a step forward last week after four out of five Council-led Expression of Interest applications to the Infrastructure Acceleration Fund (IAF) were accepted to proceed to the Request for Proposal stage.

The IAF is designed to allocate funding to new or upgraded infrastructure that allows housing development in the short to medium term and enables a meaningful contribution to housing outcomes in areas of need.

The Nelson-Tasman Monitoring Report for the year ending June 30, shows a steep increase to the median house price in Nelson, which is now 60 – 70 percent higher than five years ago. Data from the Ministry of Housing and Urban Development reveals the median sale price for for 2020/21was $583,625 in Nelson.

Kāinga Ora received more than 200 applications to the fund, and only invited around 80 to progress for the Request for Proposal stage.

The successful Expression of Interest applications were:

  • Achilles Avenue and Rutherford Street Affordable Housing Development
  • Marsden Valley / Ngawhatu Valley Development Area
  • Maitahi Village
  • Horoirangi Phase 1

Nelson Mayor Rachel Reese said it was fantastic to see so many proposals from Nelson through to the next stage.

“The lack of affordable housing is one of the most significant challenges facing the Nelson Tasman region, and providing the infrastructure needed to unlock much-needed housing in Nelson is one of the ways we can collaborate with the private sector and housing providers to start increasing the supply of affordable housing in Nelson.”

“This is clear evidence that central government are on the same wavelength as us and agree that Nelson’s housing needs are some of the most pressing in New Zealand. There’s no silver bullet that solves housing affordability overnight, but this is an encouraging move.”

An application to the Kāinga Ora-administered fund does not fetter any future Council decision making in relation to the proposals, including in its regulatory capacity.

The four proposals

Achilles Avenue and Rutherford Street Social and Affordable Housing Development (Council’s application)

Council’s application made the case for central government investment in the ringroad watermain, wastewater network, and the Linear Park – Active Transport Corridor proposed in Te Ara ō Whakatū.

This important work would allow for increased housing intensification in Nelson’s city centre, that could potentially include the proposed Kāinga Ora developments on Achilles Avenue and Rutherford Street if Council decides to move forward with this sale.


The Horoirangi proposal, led by Wakatū Incorporation, would provide an initial 200-250 homes with room for future development.

The development would be built on flat land extending from SH6 to the Boulder Bank near Nelson city and provide a range of housing options for people at all stages of life.


The Maitai Valley proposal, a partnership with Ngāti Koata and private developers, proposes to provide 350 homes, of which about 100 would be affordable.

This proposal is pending the outcome of a Private Plan Change request that would rezone the area from rural to residential, which has yet to be decided.

The latest on the Private Plan change can be read on Council’s website.

Marsden Valley and Ngawhatu Valley

The Stoke development would see the construction of about 2,250 dwellings in Marsden Valley and Ngawhatu Valley and is the largest zoned area that can satisfy immediate and future demand.