Construction of new homes is expected to ease in the next two years, according to Master Builders Australia.

Its five-year projection shows it is likely to drop below the 200,000 annual houses and apartments required to keep up with population growth, which will put further upward pressure on property prices.

MBA chief executive Denita Wawn says the next two years are not “looking good” for home supply, as a result of inflation, building material delays, worker shortages and red tape.

New home builds have already blown out from nine months to 12 months.

The report predicts dwelling starts in 2024 will fall to 174,930.

“We know that to meet the housing needs of Australians, even with a slight downturn in migration, we’re going to need to build about 200,000 homes per year to maintain demand,” Wawn says.

“Our concern at the moment and our focus in discussions with governments is around how we stimulate house building to meet those population needs.”