The council's environmental policy manager Pere Hawes presented the Housing and Business Development Capacity Assessment (HBA) 2021 to councillors last Thursday.
The report outlined the need to refresh the 2013 Growing Marlborough strategy.
Marlborough's population was projected to reach 61,000 by 2048. Nearly 80 per cent of this growth was projected to occur within 10 kilometres of central Blenheim.
Council chief executive Mark Wheeler said there had been increased pressure on the housing market and faster than anticipated population growth in Blenheim since previous housing assessments were undertaken.
"In the short-term, the next 10 years or so, we are looking pretty good but the longer-term shortfall is of concern," he said.
"There are also potentially constraints to developing already-zoned land soon enough to meet anticipated demand over the next five years. Landowners with land currently zoned residential hold the key to unlocking this," he said.
Under the National Policy Statement for Urban Development (NPS-UD) released in 2020, councils were required to provide enough land for urban development.
Hawes said there was a shortfall of approximately 82 hectares in the long-term, "out to 30 years".
The assessment recommended the future growth strategy included other Marlborough townships and settlements.
"On the positive side, we have an extra 31.5 hectares (300 dwellings), out on Battys Rd south. That's been rezoned through the [Marlborough Environment Plan] process," Hawes said.
Councillor David Croad asked Hawes at the meeting last week where the council would go from here.
"This has identified a shortfall of 900 dwellings, based on the current formula," Croad said.
"Do we wait and see the approach from landowners, or do we start the process now and actively look where that gap could be filled?"
Hawes said the answer was "both", meaning they would look at any proposals that came through in the short-term for development, and would also start a "strategic planning exercise".
"In the short term ... one of the recommendations is to continue to liaise with landowners and the land that is already zoned [residential] to encourage them to develop to realise that opportunity," Hawes said.
Councillor Nadine Taylor thought councillors should flag there was a "significant sense of urgency" for reviewing the Growing Marlborough document.
"Because we have both a short-term and a long-term deficit of land available," Taylor said.
Marlborough Mayor John Leggett said it was a "national issue".
"I'll put it more succinctly, it's a central government issue ... The tools to do something constructive to try and get a hold of some of these issues rests firmly with central government. Simple as that," Leggett said.
Wheeler said the council agreed it needed to be given "urgency".
"I think the short-term approaches that we are hearing about, could make quite a significant difference. We have got to be able to resource that," Wheeler said.
He said landowners "hold the key" to developing already zoned land to meet anticipated demand over the next five years.
"To alleviate this, there may be opportunities in the short-term to rezone land on the periphery of Blenheim," he said.
"Several developers are actively planning to approach council with rezoning requests which they believe could assist with this short-term challenge."
The council had also commissioned a survey of the community to understand their housing preferences in terms of type, size, price, tenure and location of housing. Hawes said those findings should be presented to councillors soon.
