New Zealand First leader Winston Peters says the Auckland housing bubble could burst soon, an event he says would be calamitous for the economy.
He told TVNZ's Q+A this morning the blow-out in house prices would not last and Auckland homeowners would be hit.
"A lot of those people in Auckland are about to lose their equity in their homes, as they did in 2007 and 2008 when the market collapsed.
"Now you've got to remember this, we invented the term South Sea Bubble, but it's coming at such velocity these days, the cycle used to be 30, 40, 50 years now it's about every seven years and we're facing the same again."
Mr Peters said recent governments had not kept up with the need to build more houses.