During Wednesday's Parliamentary hearing into housing affordability, CoreLogic admitted soaring prices doubling the time to save for a deposit, were widening the wealth gap and pushing more people out of the market.

CoreLogic expert Erin Owen said the time to save for a deposit had been pushed out to 12.1 years on average, making it near impossible for low income cohorts in both regional and metro markets.

Ms Owen also noted issues of housing affordability only becomes a contentious issue once richer Australians feel the impact.

"There is a long-term decline in rates of home ownership and the long-term decline in home ownership has been exacerbated in low-income cohorts," she said.

"That would suggest that you have widening wealth inequality perpetuated through Australia's housing system. Whether that is good, bad or otherwise... that would be for the government of the day if this is good or a bad thing."

Both detached housing in cities and regional areas over the past have risen by more than 24 per cent, according to CoreLogic.

The same committee heard evidence from the Reserve Bank on Tuesday, which detailed people whose parents did not own a home would face harsher hurdles in entering the market.

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Economist Saul Eslake said there were issues on both the demand and supply side, claiming the current tax system was favouring investors over owner-occupiers which was driving up price.

"Acknowledging that it has been politically controversial," he said.

"It would be to remove the tax preferences that investors enjoy that inflate the demand."

The Grattan Institute flagged taxation was distorting prices, particularly on the current discounts provided on assets through capital gains tax.

Grattan Institute director Brendan Coates said the discounts on CGT in a low interest rate environment were too generous and should be ratcheted down to at least 25 per cent.

He also noted the decrease in home ownership, which has dropped by nearly 15 per cent over the last three decades, would create a drop in living standards.

"Home ownership is falling quite sharply, particularly among poorer younger Australians," Mr Coates said.

"If someone doesn't own their home by 45, given the current settings, they are probably looking at potentially quite a big drop in their living standards when they hit retirement."

Ms Owen from CoreLogic also lamented a higher supply of apartment dwellings was a contributing factor in lower annualised growth of around 6 per cent in Canberra's property market.

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