Te Kamo resident Steve Riley said the abandoned house was well known for going up in flames multiple times over the past 15 years.
He said the Auckland-based homeowner has no plans to demolish it yet.
About seven fire trucks were called out, with two called back after the fire was controlled.
Traffic management was in place on Station Road as motorists, stuck in traffic, watched the burning embers and trail of smoke.
Six brigades from Kamo, Whangārei , Hikurangi, Portland, Onerahi, and Ngunguru attended the scene. Two police vehicles were also present.
Avneesh Vincent is the crime and emergency services reporter at the Northern Advocate. He was previously at the Gisborne Herald as the arts and environment reporter and is passionate about covering stories that can make a difference. He joined NZME in July 2023.