Among the issues the committee will be looking at will be whether the supply of reasonably priced private housing can be increased and whether the current trend away from homeownership is desireable.
It will also look at whether government schemes such as Help to Buy have been effective at improving the affordability of housing and whether there are tax measures which can improve housing supply.
Lord Hollick, chairman of the committee, said: “There are clearly serious issues with the UK housing market.
“Across the country, young people in particular are struggling with the cost of housing, whether they are looking to buy or rent. There is an affordability crisis in housing.
“We feel the time is now right for a thorough evidence-based assessment of the economics of the housing market.”
The committee has asked for evidence to be submitted by 17 December.