Other companies were also experiencing issues with plenty of vacancies but not enough takers.
Property Brokers sales manager Dave Frith said the problem was partly because many people who moved to the region for work had difficulty finding housing.
He said there were plenty of empty sections but builders and contractors were working flat-out on current projects.
Covid lockdowns hadn't helped by creating disruptions in the supply chain.
Frith said people could buy a house in Dannevirke at a fraction of the cost of a property in Auckland, which was a big incentive, but there just weren't enough available.
Nicholson said that demand for housing was an issue.
He said various reforms had led to more pressure across the local government sector.
"Then you've got central government agencies such as Kainga Ora that are doing huge housing work.
"They're employing their own planners and building inspectors rather than coming to councils to do that work.
"Some of our other councils are losing planners and building inspectors to Kainga Ora or other government agencies, then they obviously go out and advertise for the same role and then our staff leave for other roles as well, so there's that roll-on impact."
Nicholson said the Tararua was experiencing its own growth, which meant more development, but the lack of skilled staff in areas such as planning meant current resources were put under a bit more pressure.
There was also no social housing currently in the Tararua, including emergency housing.
MP Kieran McAnulty said the Tararua District and the Wairarapa were the only two regions in New Zealand not to have a government social housing presence.
"All our social houses were sold by the National Government in 1999."
He said it had been a priority to address the problem and he had managed to convince Kainga Ora that they needed to return to the district.
"They have now dedicated two of their people to locate development opportunities."
He said the mayor, Tracey Collis, and Tararua District Council were also working hard to identify opportunities and working with Kainga Ora to help streamline any development.
"And I know they are doing all they can to encourage development of private builds as well."
He said bringing back social housing would benefit the whole region.
"We all know of people that are in private rentals that they cannot afford.
"And older people that would leave their home if there were smaller options available.
"Increasing social housing gives these people options, taking pressure off the private rental market and increasing the number of houses available."
Access to the district was another issue.
With the new road through the Manawatu Gorge not due to be completed for another three years, those commuting from Palmerston North were coming via the Saddle Rd or the Pahiatua Track.
McAnulty said when the Gorge closed it was evident that the district, or Woodville and Dannevirke in particular, felt cut off from the Manawatu.
"This Government funded the replacement highway and I am pleased that progress of that continues, on track to be completed on time.
"Once this is completed I am confident we will see growth in Pahiatua, Woodville and Dannevirke – as well as surrounding areas," he said.
Nicholson said reforms and the new road would open up a lot of opportunities but it was important to plan for that now, rather than when the road was completed.
"It's about looking at what we've got. Everything's within five minutes, you can get what you need."
He said in terms of housing, although prices were going up, and there were shortages, it was still affordable in comparison to most places in the country.
"It's a more relaxed environment, good place to bring up families, there's a good community spirit.
"From a council perspective there's a lot of good things happening within the whole district, that we all can be excited about."
