A new report has found the National Development Plan may have "underestimated" the level of investment needed to meet demand.

The ESRI adds existing targets for housing supply might understate what's needed, because of the increase in population which was recorded in the most recent Census.

It has called for the Government to "think creatively", but adds it faces a "dilemma" when it comes to investment in public infrastructure.

ESRI Director Alan Barrett says increased investment in housing would slow down house prices in the long run:

(pic ESRI)