Housing shortage tipped to reach half a million

HIA chief economist Harley Dale has told the Australian Associated Press the projected national shortfall of 460,000 dwellings in the next ten years will be fuelled by planning constraints and a lack of affordable land available to developers.

"At the end of the day the lack of adequate, affordable land supply is at the heart of the problem," Dale said.

"The number of processes a development must go through is higher now than was the case 10 years ago. We are regressing rather than progressing in terms of the bureaucracy involved in building a new home."

The news comes as building approvals fell by 3.3 per cent for the month of June, while private house approvals dropped by 2.5 per cent.

The current national housing shortfall sits at 190,000 dwellings.