Gareth Lawrence Smither, 53, was declined parole again at a hearing last month after the victim’s family continued to "strongly" oppose his release to the South.
Smither murdered 26-year-old Karen Jacobs in 1997 and has been in prison since his sentencing that year.
The killer was transferred to Waikeria Prison in the Waikato to facilitate a release in the North Island and at the recent hearing, he accepted a release in the South Island was unrealistic.
"One of the concerns has been in finding Mr Smither suitable accommodation is whether or not there is or can be adequate [redacted] support for him in the community," board chairman Sir Ron Young said.
"That is a factor of real importance for the future."
The board heard Smither had completed all available rehabilitative programmes and had not accrued any misconducts while in prison.
Long-term accommodation was the key, Sir Ron said.
Any residence with a six-month stay was inappropriate, he said, Smither required a facility with at least a 12-month term.
Smither had been discharged from a psychiatric hospital two days before the brutal murder.
He stabbed Jacobs 33 times — mainly in the neck area — and then bashed her repeatedly with a garden spade while her daughter was in the next room.
Ms Jacobs’ body was found by her mother.
Smither will see the Parole Board again in August.
