The Government has announced plans to build another 40 houses in the east of Christchurch, to add to the 83 it has already built since the earthquakes.
Two, three and four bedroom units will be built in the eastern suburb of Linwood at a cost of $12.5 million.
A government report on the scale of the housing shortage in the city shows the number of rental properties has dropped by 45% since the earthquakes.
The Ministry of Business, Innovation and Employment report also points to rapid rises in both house and rental prices and a drop of almost 60% in properties available for lower rents.
The new houses planned for Linwood will be available by those who need somewhere to rent while their own homes are being repaired. Rents will range from $271 to $423 a week.
The Ministry will sell the units once the shortage has eased.