Significant investment in social and affordable housing is crucial to solving New Zealand's housing crisis and ending homelessness, a new report says.

The report by Community Housing Aotearoa warns homelessness has reached its highest level ever, with a shortage of affordable housing compounding the problem.

Chief executive Paul Gilberd said New Zealand had the "programmes and the capacity" to end homelessness if there was political will to do so.

"We can solve it as a nation here in New Zealand. It really is a political choice," he said.