Finance Minister Grant Robertson says "the Reserve Bank is now required to consider housing" when making monetary and financial policy decisions.
Changes have been made to the Bank's Monetary Policy Committee's remit requiring it to take into account government policy relating to more sustainable house prices, while working towards its objectives.
This announcement follows a letter Robertson wrote to RBNZ governor Adrian Orr in November suggesting a change to the rules under which it operates, to take heed of the impact of any monetary policy on house prices.
Ashley Church is a property expert for One Roof. He joined The One Roof Radio Show on The Weekend Collective to share his thoughts on the issue.