For the first time in history houses in Auckland cost more than they do in Melbourne, New Zealand's Labour says.

Housing spokesman Phil Twyford says a survey by international financial services company UBS shows that at the end of December the average price for a house in Auckland was $A648,176 ($NZ690,247).

At the same time, the average price in Melbourne was $A634,890.

“Aucklanders know house prices are out of control and this proves it beyond doubt,” he said.

“Right now National is creating a generation of renters and shattering the dream of home ownership.”

The government says it is freeing up land for housing in Auckland and helping first home buyers, but Labour says its policies aren’t working.

Labour’s policy is to build 100,000 affordable homes, most of them in Auckland, in 10 years.