An economist who called for negative gearing to be scaled back in a report in 2015 says the housing affordability crisis is even worse now than when he first proposed the changes.

The recommendations in Richard Holden's report for the McKell Institute three years ago were adopted as policy by the Federal Opposition ahead of the election in 2016 and they're taking the same policy to the election next year.

In a new report released today, Mr Holden says since his original report, growth in property prices has out-paced wage growth, and something must be done to level the playing field between owner-occupiers and property investors.