Australia and New Zealand's manufacturer of clay and concrete products calls on the state governments to release more land for real estate development.

Brickworks Limited managing director Lindsay Partridge said, “We have a backlog of 100,000 dwellings which would take a decade to clear... We need the government to release more land.”

Partridge pointed at the 33,000 new dwellings being built each year when demand was running at 45,000. The shortage of housing in New South Wales was just one of the concerns the housing industry faces.

High rental vacancy rates and poor housing affordability in Queensland and Western Australia were also grabbing concern.

According to Partridge the resources boom in Western Australia attracted a significant number of property speculators; however, more first-home owners were choosing to build. As a result, a high vacancy rate exists.

In Queensland, migrating baby boomers from Victoria and New South Wales brought up house prices. Partridge said, “When the interstate migration stopped, this resulted in high rental vacancy rates and poor affordability.”

The managing director also expressed concern for the housing sector's future when the Reserve Bank of Australia lifts interest rates before the end of the year.

Macquarie analyst Doug Macphillamy said weaker activity in housing and non-residential markets would keep Brickworks and other property related earnings soft in 2011.