The Government is being warned that rising migration could undermine efforts to rein in house prices, Radio New Zealand reports.
In Thursday's Budget, the Treasury says the annual net inflow of migrants is forecast to peak at 38,000 in the second half of this year, up from an earlier forecast of 26,000.
The Treasury warns that the rising number of migrants would put additional pressure on the housing market.
Finance Minister Bill English says the Government was not considering new moves to restrict the number of migrants entering New Zealand.
English told Morning Report it is not clear how long the trend would continue and he does not think a temporary restriction on migration would achieve much.
He said Auckland City Council has demonstrated that freeing up land for housing developments can help address the house price problem.
New Zealand First leader Winston Peters said the Government has failed to consider the pressure from exploding immigration on housing, infrastructure, education and health.
The Budget also earmarked $27.8 million to allow duties on some building materials to be dropped for three years, estimated to save about $3500 on the construction of a new home.
The Green Party said slightly reducing the cost of building supplies will not improve the supply of homes.
But Housing Minister, Nick Smith, says there are no quick fixes to the housing situation and the freeze on building material duties was a big step toward making houses more affordable for first home buyers.
