Prime Minister Helen Clark says the Government is looking at "a whole range of issues" to ensure housing is affordable but can't wave a magic wand.
National's housing spokesman, Phil Heatley, has called for a parliamentary inquiry into affordability.
He said yesterday property prices throughout the country weredemoralising for young people and the relationship between incomes, prices and interest rates should be investigated.
Helen Clark said on TV One's Breakfast programme today New Zealand had become a very attractive place to live and migration meant there was an increased demand for housing.
"We are looking at a whole range of things, we have the mortgage insurance guarantee scheme to help low income families into first homes, and the Hobsonville development the Government is heading in West Auckland will make sure about 30 per cent is affordable housing," she said.
"It's a complex issue, you can't wave a wand and bring the prices down."
Mr Heatley has written to Parliament's commerce select committee asking for an inquiry.
But Helen Clark said she thought it was crocodile tears from National.
"They were quite happy to make poor people pay market rents for state houses when they were in government, and that's still their policy," she said.
"I don't think we're hearing anything very serious from them."
An inquiry could look into land availability, rent-to-buy programmes, home-equity initiatives, building costs and regulatory matters.
It could identify which components of the cost of housing should be and could be brought under control to stabilise property prices and how this could be best achieved.
Mr Heatley also suggested taking a look at organisations such as Habitat for Humanity which helped people with their goal of owning a home.
