The slip blocked the accessway to the houses, but residents were able to be evacuated via their neighbour's property, he said.
"We are keeping all the occupants warm and dry, police have set up a road block, and we have diversions in place.
The road has been cordoned off between Mandalay Terrace and Benares St.
Franklin said Wellington was sodden and the slip was still moving.
"We've had record winter rainfall and this is happening all over Wellington unfortunately. This one is further compromised by the water main, which is leaking through the slip.
There have been almost 500 slips over the past few soggy weeks in the capital.
They have been caused by a long period of wet weather, according to GNS Science.
In July, nearly 300mm of rain was recorded in Kelburn, which is almost double the average amount for that month based on recordings from the past 30 years.