The Housing Industry Association (HIA) has affirmed concerns earlier by Western Australia's Chamber of Commerce and Industry (CCI) that the state government would need to release more land and increase urban density in order to encourage more affordable housing availability.

CCI said that exorbitant price of home units would discourage further growths in anticipation of Western Australia's coming boom, adding that the state is poised to encounter labour shortages as expensive housing would turn away prospective interstate workers.

According to a report commissioned by the Council of Australian Governments, only 10 percent of WA homes are affordable for those belonging to low or middle incomes with HIA acting executive director David Endersby underscoring the fact that the state is giving away the chance to entice interstate workers by falling behind on affordable housing.

He said that the housing industry should consider new trends in adopting fresh approach for housing policies, pointing to some incidence where children overstay on their parents' home beyond the age of 20, or even 30.

Mr Endersby added that financial institutions should also look into the possibility that parents could actually help out on their children's plan to buy properties, so there has to be some leeway to provide for shared equity schemes for loans.

Another consideration, according to Mr Endersby, is the type of houses being built as he stressed that "the diversity of housing supply is also a key issue, such as single people don't need to live in four-bedroom, two bathroom houses."

He conceded though that families moving interstate would need such accommodation level, as he emphasised that the state will need to consider and study such factors in determining their housing policies.