It is unclear whether the house beside a newly formed "mud hole" on a Rotorua property will have to be moved.
The Meade St property has been issued with a dangerous building notice and is currently uninhabitable.
The family living in the house was woken in the early hours of June 25 when a mud pool burst from the ground at the end of their cul-de-sac.
In a new statement to the Rotorua Daily Post, the Rotorua Lakes Council said the likelihood of the house remaining on the site was "dependent on the activity of the geothermal event and the stability of the surrounding ground".