The government's metropolitan plan for Sydney 2036, which reveals that the city needs 770,000 more homes, lacks clear targets and implementation strategies, according to Australia's peak body for the residential construction industry.

The Housing Industry Association (HIA) has identified the housing shortage and low affordability levels that exist in Sydney for some time now.

HIA Executive Director, NSW, Mr David Bare, said HIA as early as March 2010 released the Housing 2020 report which shows that over the next 10 years alone, NSW will need to build 512,000 dwellings, well ahead of the 401,000 dwellings completed over the previous 10 years.

"If current building trends persist, NSW's cumulated housing shortage is expected to reach more than 230,000 by 2020, by far the largest shortage of all states and territories.

"HIA has been calling for the government to put in place measurable housing targets and strategies to encourage the delivery of new homes and reduce the housing shortfall."

Bare said "Whilst we commend the establishment of the Land and Housing Supply Co-ordination Taskforce as one of the mechanisms to provide options on housing for Sydney's population, timing is clearly an issue.

He said it is unknown whether the taskforce will even continue after the NSW election in March 2011, as there is currently no regulation established to maintain the life of the taskforce.