It is unclear whether the house beside a newly formed "mud hole" on a Rotorua property will have to be moved.
The Meade St property has been issued with a dangerous building notice and is currently uninhabitable.
The family living in the house was woken in the early hours of June 25 when a mud pool burst from the ground at the end of their cul-de-sac.
In a new statement to the Rotorua Daily Post, the Rotorua Lakes Council said the likelihood of the house remaining on the site was "dependent on the activity of the geothermal event and the stability of the surrounding ground".
"It will be at the owner's discretion as to what happens to the house. Council will continue to provide advice around public safety."
The statement said it appeared the effects of the mud pool were still isolated to one property, and underground infrastructure for neighbouring properties was not affected.
It also said neighbours had not expressed concerns to the council about the mud pool affecting their property value.
"Geothermal activity in the area is not unusual."
It is too early to say what the long-term impact of the mud pool will be on the property's status under the Rotorua Lakes Council district plans, according to the statement.
A shed beside the mud pool was taken away two weeks ago as a safety precaution when the ground continued to collapse.