Earthquake Recovery Minister Gerry Brownlee has been accused of having his "head planted firmly in the liquefaction" over a housing shortage in Christchurch.
In the past week, there have been reports of Christchurch people facing homelessness due to rising rents, and welfare agencies have said they are being stretched thin by demand.
The latest ASB quarterly economic forecast released today predicted house prices would continue to rise this year, with an annual increase rate of about 5 per cent nationwide.
ASB chief economist Nick Tuffley said under-building in recent years, combined with the housing shortage created by the Canterbury earthquakes, meant the situation was particularly tight in Christchurch.
Mr Brownlee last week said his political opponents were talking up the scale of the problem.