There are calls for Government intervention as house prices rise across the country, with prices in Auckland soaring beyond the reach of first home buyers.
Chair of the Productivity Commission Murray Sherwin told TV ONE's Q A programme the Government needs to step in, and quickly.
"The cost of houses is too high. We can build them cheaper, we should be building them cheaper and we need to," he said.
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Sherwin said Auckland's experiencing a housing shortage that will only get worse. He said new houses being built are too often at the top of the market.
"We no longer build the starter homes that allow young couples and young families to get started in a decent home."
The Productivity Commission says Government and local councils need to work together to bring Auckland land prices down, to make housing more affordable.
Bernard Hickey from interest.co.nz said New Zealand is at risk of having a generation of New Zealanders who will not be able to afford a family home.
"Unless we get a lot of new houses, we are going to have big problems with affordability for years to come," he told Q A.
Watch the full interview with Murray Sherwin and Bernard Hickey on Q A 9am tomorrow morning on TV ONE.