The release of Treasurer Joe Hockey's intergenerational report will provide the golden opportunity to put housing supply reforms on the agenda.
In its latest national outlook, the Housing Industry Association says such reforms would be integral component of any broader economic reforms.
"We need to build on the lofty heights being achieved this new housing cycle and ensure that supply in coming years meets the requirements of a growing and ageing population," the association's chief economist Harley Dale says.
Mr Hockey has repeatedly said the five-yearly report that gauges the challenges facing Australia over the next 40 years will be released at the end of the month.
The association's latest report shows 2014/15 setting a record number of new homes being built.
A total 195,936 new dwelling commencements are forecast for this financial year, a 7.7 per cent increase and a third year in a row when new home construction has headed higher.
"Imagine how weak the Australian economy would be without new housing and its economic multiplier benefits," Dr Dale said.
Dr Dale said while residential construction is the success story of the economy, there are wide geographical divergences.
Solid increases are projected for 2014/15 in NSW, Victoria, Queensland and particularly Tasmania, but growth is expected to declines in South Australia, Western Australia, Northern Territory and the ACT.
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