Earthquake Recovery Minister Gerry Brownlee says a temporary village will be built in Christchurch to meet the shortage of rental properties available in the city.
Mr Brownlee says 20 two-bedroom units will be built in Rawhiti Domain, New Brighton, with the potential for 43 more if there is the demand.
There are already temporary villages in Linwood Park and Kaiapoi, with 64 families staying for an average period of 12 weeks while their quake-damaged homes are repaired.
The minister says the need for temporary accommodation will increase as home repair ramps up later in the year.
He says that when the first villages were set up a bigger inventory of accommodation units than needed was purchased and those will now be set up in Rawhiti Domain.
The announcement comes only days after Mr Brownlee appeared to rule out government intervention to address the city's housing shortage, saying the solution was best left to the market.