We consider the problem of evaluating in streaming (i.e. in a single left-to-right pass) a nested word transduction with a limited amount of memory. A transduction T is said to be height bounded memory (HBM) if it can be evaluated with a memory that depends only on the size of T and on the height of the input word. We show that it is decidable in coNPtime for a nested word transduction defined by a visibly pushdown transducer (VPT), if it is HBM. In this case, the required amount of memory may depend exponentially on the height of the word. We exhibit a sufficient, decidable condition for a VPT to be evaluated with a memory that depends quadratically on the height of the word. This condition defines a class of transductions that strictly contains all determinizable VPTs.