Labour is promising to build almost 150 starter homes and state houses in Palmerston North.
The homes will be a mix of KiwiBuild starter homes for first homebuyers and state houses on land that leader Jacinda Ardern says National has left vacant for years.
The bare land on Botanical Rd, Crewe Crescent, and Rugby St is owned by Housing New Zealand.
"Palmerston North is a growing, vibrant city that urgently needs more houses. With house prices in Palmerston North up 23 percent in the past two years, it's getting hard for people to buy a place of their own."
The plan is to build terraced three-bedroom starter homes for $275,000, as well as cheaper one- and two-bedroom homes.
They will be sold to first homebuyers at cost.
"In Palmerston North, and all around New Zealand, we are going to build the houses our families need and give people a fair shot at owning a place of their own," Ms Ardern said.