The Australian Property Council says the supply side of housing are where the “major problems” of affordability are.

The Morrison government recently announced their housing policy for the next election, which will allow first-homebuyers to access a portion of their superannuation fund for a house deposit.

While the Property Council says the policy will help some home buyers, it doesn’t address the larger issue.

“We’ve got the governments own official forecast show that housing supply is set to drop by about 35 per cent over the next five years,” Ken Morrison, CEO of the Property Council of Australia, told Liam Bartlett on 6PR Mornings.

“While at the time, population growth is going to resume with international borders back open again, and by 2032 the official forecast is that Australia will be 163,000 dwellings under-supplied, so below the underlying demand of a growing population.

“Falling supply and rising demand – that’s no equation to get housing affordability solved.”

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