Scott Morrison has laid out Australia's housing affordability problems, ranging from young people trying to raise a deposit to older people using their superannuation lump sum to pay off the mortgage.
The treasurer also used a pre-budget speech in Melbourne to discuss shortages in the rental and community housing markets.
He reiterated a national affordable housing agreement with the states wasn't working and "just shovelling money out the door" won't solve the problem.
"Obviously there's not a single national housing market and affordability is not impacting all Australians the same way or at the same time," he told an audience at an Australian Housing and Urban Research Institute address in Melbourne.
"However, it is worth remembering Sydney and Melbourne are home to forty per cent of Australians and the significant housing challenges faced in Sydney and Melbourne do have national implications."
Housing affordability is expected to be a key plank of the May 9 federal budget.
Mr Morrison admits there's no single or easy solution and blamed previous governments for avoiding the issue.
"Failure to confront these issues in the past can be traced back to the problems we face today," he said.