Porirua could have 6000 more homes built on farmland under a new government development scheme.

Urban development agency Kāinga Ora has chosen Porirua's northern growth area (NGA) for assessment as a potential Specified Development Project.

The area, which is more than 1000 hectares, is the first project to be picked for the new process under the Urban Development Act.

Porirua City Council asked Kāinga Ora to use its tools under the act to facilitate and coordinate housing and urban development in the area.

Specified Development Projects (SDPs) provide a new way for Kāinga Ora to work with councils, iwi, landowners and private developers to plan and deliver complex urban developments.

Through the process, Kāinga Ora has a range of tools to overcome key barriers to development, helping projects progress with more certainty.

The spot was selected after months of discussions with the council, Ngāti Toa Rangatira, and relevant landowners, Kāinga Ora general manager of urban planning and design Katja Lietz said.

"Like many regions in Aotearoa, Porirua badly needs more housing, both now and in the future.

"We are now assessing the opportunity to use our new urban development tools to enable further housing and infrastructure for the area."

The council estimates 6000 homes and associated amenities could be delivered in the area, once fully built out.

Council chief executive Wendy Walker said the northern growth area was the region's most important greenfield opportunity, given its location and scale.

"Current Porirua developments are not delivering the number of new houses required per year, and the city's housing challenges are becoming more acute. Porirua has a lack of affordable housing and some of the highest rents in the country," she said.

Iwi supports the assessment selection, said Te Rūnanga o Toa Rangatira's chief executive Helmut Modlik.

"It's a great opportunity for the iwi, the community and Government to work together on greater outcomes for the people and hapori of Porirua."

Lietz said the selection was just the first step in the process, and would be followed by about nine months of "extensive engagement and consultation" as they consider whether the project would be suitable as an SDP.

"Once the assessment is complete, Kāinga Ora will recommend to the ministers responsible whether or not an SDP should be established, however we have a way to go before that decision is made."