First home buyers hoping for relief in this week's Budget are set to be disappointed.
The Government has ruled out any new measures to help young buyers get into the property market.
Finance Minister Bill English is keeping a tight grip on Budget spending and said the Government will measures its success "not by how much money is spent but how much difference it makes for New Zealanders".
It is anticipated significant spending will be announced for Child, Youth and Family to address at-risk families with early intervention initiatives.
Low income Kiwis needing rental accommodation will also be a focus, with Social Housing Minister Paula Bennett admitting homelessness is worsening.
"Certainly what we've seen is it has been more acute in the last two years," she said.
It is also expected the Government will announce further land is freed for homes in Auckland to combat the "housing crisis".
However, the Government's critics insist Prime Minister John Key and his colleagues are in denial.
"They need to build more homes," Labour Party housing spokesperson Phil Twyford said.
"We are losing more state houses than we are building and [the] housing crisis keeps getting bigger."
Mr English also denies there is a housing crisis and said, "no, I wouldn't use the word crisis, it's tough for individual families".