The report forecasts the country to build 938,000 homes over the period to June 2029, up from the 903,000 homes previously forecast but short of our welcome 1.2 million new homes target by 262,000 homes.
Property Council Chief Executive Mike Zorbas said the report shows the need to increase productivity in the construction sector, simplify planning systems and encourage investment.
"The alarm bell continues to sound on national housing supply," Mr Zorbas said.
"The sad fact is that many Australians feel that homeownership is out of reach.
"We have seen the federal and state governments coordinate their efforts on boosting supply, but more must be done.
"Our skills and planning systems are not yet match fit for this century.
"More than 30 per cent of the cost of a new home is government taxes and charges.
"East coast states have daft foreign investment taxes that are barbed wire to overseas institutions that want to send their money to help Australian companies build the assets our cities need.
"The least cost answer for indebted states is to modernise our planning systems and put measures in place to boost the proportion of skilled workers coming into the country.
"We need to bring forward federal environmental approvals and force power and water providers to stop delaying the delivery of new homes, industrial and commercial assets that our communities need as they grow," he said.
