The Government's Kiwibuild homes might still be out of reach for its target market.
An MBIE briefing paper suggested the $500,000 houses might not even be affordable for first home buyers within 10 years,
It estimated a household income of $114,000 a year is needed to buy one of these houses, but the current median is $90,000.
Property Institute CEO Ashley Church says inflation always meant prices were going to steadily climb.
"A new home that costs 600 grand now for a first home buyer, is going to cost in 10 years time, in 2028, somewhere over a million bucks. That's actually not an excuse not to not do it, it's actually a reason why we should be doing this right now."
Church says the Government could strike a special financing agreement with banks to lower the restrictions.
He says the Government could guarantee a buyer's deposit for a few years if they don't have the cash, or loans could be interest only.
"There are some solutions to these things but we have to be innovative about it. We've got to build these homes. I know it's tough, I know these prices look scary, but if we don't do it now, it's going to be much worse in 10 years."
LISTEN TO ASHLEY CHURCH TALK WITH MIKE HOSKING ABOVE