Finance Minister Bill English said the Government was looking at housing in much the same way as previous administrations had focused on reform of other parts the economy, such as electricity.
English, in a speech to the Auckland Chamber of Commerce yesterday, said the Government spent $2 billion a year on accommodation subsidies, adding that about 60 per cent of rentals are Government subsidised. In addition, one in 16 Auckland houses are government-owned.
"Housing is our biggest asset class and our biggest market, with housing stock worth eight times the share market," English said.
Over the past 25 years New Zealand had gone through extended processes to reform the electricity, telecommunication and financial markets.
"In each case it took years to understand the impact of existing rules, and how to change them to achieve a more efficient market," he said. "Now we are addressing housing in the same way."