The number of Nelson homes considered too unsafe to live in as a result of last week's flooding has risen sharply and it may be months before some residents can move back in.
Council officials are still finalising the tally, having inspected hundreds of properties in the past few days.
The city's mayor Rachel Reece says she expects several dozen have been wrecked and says the shortage of housing in the region is making the task of finding accommodation for those displaced a huge challenge.
Fifteen houses have been red-stickered as uninhabitable, and 108 yellow-stickered - many because they've failed slope stability assessments.
Just under half the 570 homes were evacuated after the torrential rain of last week because of the threat from flooding or slips have now been declared safe to reoccupy.
Residents across the top of the South Island will also have to wait for some time before key highways can be reopened.
The Nelson's state of emergency has been extended until Wednesday next week to ensure ongoing support from the government.
Nelson mayor Rachel Reese told Morning Report those houses that had been red-stickered were waiting to be assessed further and some of these could drop down to yellow-stickered.
"The reality in our region is there hasn't been enough homes to live in for many, many years. We have a significant housing shortage, so we're working to look for opportunities for holiday homes to be made available for people who had been displaced.
"We have 108 homes that are yellow, which means people can't be in their homes at night. It's going to be a challenge for us."
Authorities are planning to work with holiday home providers like Book a Bach to source suitable accommodation, she said.
Relying on hotels and motels to accommodate those affected posed an issue coming into summer, as the region relied on tourism and visitors to sustain the local economy, she warned.
"We have to ensure we're not creating another problem, but homes are the key mission at the moment."
Inspections of all homes damaged are expected to extend beyond this week, as assessors look at more homes self-evacuated by residents, she said.
"We have to ensure we're not creating another problem, but homes are the key mission at the moment" - Nelson mayor Rachel Reese
She said 339 homes had been approved for residents to return, and it was hoped some of those yellow-stickered could drop down to white too, once inspections were completed this week.
Nile Street resident Mark Sheehan, who lives near the Maitai River, and is due to get his property assessed today. He counts himself lucky his property didn't sustain more damage during last week's weather events.
"The damage to the property is pretty severe but the flood stayed out of the main house, so we're very fortunate. A number of neighbours were not so fortunate," he said.
"We are allowed to live in it now. We had an issue with the wastewater and that's been resolved. So, it's just a clean-up of the garage area and the backyard."
He said the community had responded to the floods well, with the local council making the local refuse centre free to use and there had been free meals for residents affected. He said roads remained a big concern for people.
"Reinstating a link, particularly down in Nelson to the West Coast is a real priority" - Marlborough mayor John Leggett
Marlborough mayor John Leggett told Morning Report Minister for Emergency Management, Kieran McAnulty, had visited yesterday and had surveyed the damage from a helicopter and was aware of the enormity of the task ahead for those communities affected to recover
Geotech engineers were now travelling around the region assessing damage as a first step to reconstruction.
Many residents across Marlborough Sounds will continue to use water taxis as roads remain closed, Leggett said.
There are now emergency routes open on State Highway 6 and 63, but the limited access is causing widespread disruption with communities cut off, he added. In some parts of those highways, large chunks of the road were gone.
"Reinstating a link, particularly down in Nelson to the West Coast is a real priority," he said.
"We got some pleasing news yesterday that State Highway 63 link may not be as challenging as first thought, so that will be a priority to get that open. But really the road from Rai Valley to Nelson is going to be very challenging long term to get it to a state where it is available for public use."
Long stretches of State Highway 6 and 63 remain closed today.
"The clear message that we are getting from Waka Kotahi that this will be a priority fix to get that link up and running, but we're lucky to have State Highway 63 as an alternative."
Rai Valley's volunteer firefighters have been flat out responding to the destruction caused by last week's torrential rain.
The rural settlement in Marlborough is still isolated from both Blenheim and Nelson due to damage on State Highway 6.
While a 'pioneer track' has been carved through Hira to the Rai Valley on State Highway 6, that is currently only for contractors and emergency services.
"There's going to be farmers needing feed" - Rai Valley Volunteer Brigade chief fire officer, Nigel Patterson
Rai Valley Volunteer Brigade chief fire officer, Nigel Patterson, said the track was suitable for dirt bikers and not vehicles, and that the land in the area was a mess. Farmers now faced issues caring for stock.
"There's roading tipped up, house damage, wash-outs and a lot of farmers with damage to their properties... Stock is going to be a big thing for the next week or two. There's going to be farmers needing feed, with the road being closed at the moment ... farmers are struggling for feed up here."