"We've done a little bit of work in terms of the current area that's zoned residential, and the number of sections that are covered in the current residential area, and assuming that the number of houses within that period continues, we will theoretically run out of residential-zoned land in about 15 years."
The residential zone is bounded by Rutland Rd to the east, Lincoln Rd to the west and Dalefield Rd and Kent St to the south and north.
The need to expand was good news for the town, Mr Wright said.
"In many ways it's a good sign because it shows that the town is growing. But it means sometime down the track, if it continues to grow at the present rate, there will need to be some re-zoning of land."
Infrastructure, such as pipes, would also need to be extended to support residential growth, he said.
The council kept funds in reserve from previous subdivisions in order to help offset the cost of extending infrastructure, Mr Wright said.
The 2014 numbers were still being finalised, but about 371 new or relocated houses had been built in the town's residential area since 2006.
On average, there were about 40 new houses/relocations every year in the residential zone.
Numbers dropped during the 2008-2011 period, probably as a result of the global financial crisis, but were rising again with 49 new/relocated residential houses in 2013, Mr Wright said.
Building was spread across the town, but had been especially strong in Armstrong Ave and Carrington Drive.
It was possible that re-zoning would be considered when the combined district plan was reviewed next year.
Mayor John Booth said it was great Carterton was growing quickly.
"It's a good thing really," he said.
"I guess the difficult side to it is the fact that it does increase the demands on our infrastructure."
Wastewater infrastructure was planned 50 years in advance and would be able to keep up, he said.
The "scenario on the table at the moment" was making more land in the urban area available by changing its use.
"There are property developers that are already making noises about wanting to do subdivisions."
Some landowners on the edge of town had already expressed interest in subdividing, Mr Booth said.
He did not like the option of in-filling, but said it depended on what people preferred.
"I'm not a great fan of making little, small sections but we have to look at what sort of housing people want. If it's high-quality apartments, then it's always possible. But a lot of people in Carterton enjoy having lots of space."
If there was increased demand, land in the urban area would potentially increase in value, he said.
"It's very hard to determine what will happen but I guess you'd have to surmise that the value will have to keep increasing."
QuotableValue (QV) statistics for February showed the average value for a residential property in Carterton was $270,106, up 3.5 per cent compared with February 2014.
