Executive director of the organisation Caryn Kakas said the housing shortfall in the national market is projected at 215,000 and will continue to grow if a recent report from the National Housing Supply Council (NHSC) proves accurate.
Responding to the NHSC's report, Ms Kakas said a "holistic, integrated approach" will prove crucial to tackling the shortfall of Australian homes by supporting the construction of new residential properties.
Involvement from the federal government must be matched at state and territorial level if a more affordable future is to be achieved, she claimed.
Ms Kakas added: "It is vital, if we are to build a strong economy and meet the housing demands of our growing population, that the obstacles to delivering new housing are removed."
Australians for Affordable Housing has also commented on the issue, urging the commonwealth government to make the creation of low-cost homes a "major priority".