The Turnbull Government will reinstate an inquiry into the housing market which it put on hold at the last federal election.

Federal Liberal MP John Alexander, who was chair of the House Economics Committee investigating the housing market, said it would be restarted and would look at "everything" — including negative gearing.

"It is going to be reinstated. I understand the Treasurer has written to David Coleman, who's the chair of the Economics Committee, to ask him to complete it," Mr Alexander told 7.30.

"I've spoken to David with the ideas that we'll work together on the final drafting."

Mr Alexander said the inquiry, which was looking at the volatility of the market and access to housing for the next generation, would pick up where it was left.

"The evidence had been completed. It really is just a matter of drafting the evidence, drafting the recommendations."

On Friday, the New South Wales housing minister Rob Stokes called for changes to negative gearing, the tax breaks used by many investors to claim back their losses.

While the Prime Minister has ruled out any changes, Mr Alexander says the inquiry would look at negative gearing.

"We will look at everything," he said.

"I think the discussion needs to happen."

And his advice to young people wanting to buy a house in a capital city?

"Unfortunately the best advice would probably be to buy a lottery ticket because I think you're just locked out of the market," Mr Alexander said.

"The traditional economic basis is three to five years of average wages buys an average home. In Sydney it's 12.2 years of average wages to buy an average home.

"We're a long way from housing to be accessible [for an average] wage earner."