Wellington house prices won't stabilise until more development's given the green light.

The New Zealand Initiative's chief economist Dr Eric Crampton told Kate Hawkesby Wellington housing is on an utterly unsustainable path.

He says the median house now costs just over seven times the median household income.

Wellington City Council's provided a blueprint for more housing intensification but it's attracted fierce opposition from those wanting to protect character and heritage in inner suburbs.

Dr Crampton says folks in leafy inner-city suburbs have always opposed development and higher density.

"If we all do that, the result is astronomical house prices."

Crampton says the median Wellington house now costs more than seven times the median household income.

LISTEN ABOVE