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Labour leader David Shearer has proposed a $1.5 billion government bond issue that would finance the construction of 100,000 homes for first-time buyers.
Mr Shearer says the homes will include terrace housing and apartrments, and be aimed at those with a budget of $300,000 or less.
Two-thirds of the homes would be build in Auckland within five years.
The balance would be built in "affordable" centres including Tauranga, Nelson, Christchurch and Queenstown.
Mr Shearer says as homes are built, in partnership with the private sector and community housing groups, money will be paid back into the pool.
Bondholders would be repaid after 10 years.
National has predicted a cost blow-out. NBR economics editor Rob Hosking has multiple issues with the initiative.
Finance Minister Bill English recently took a white paper to cabinet, following a Productivity Commission report on housing affordability.
The white paper proposed a range of reforms centred on making more land available, and the resource consent process cheaper and easier.