The Construction Industry Federation is warning the government it must help reduce the cost of building a house, if it wants to meet its housing targets.

The Housing Agency is publishing its first report on supply and demand today, which is expected to call for the construction of 21,000 houses each year for the next three years.

It's hoped the National Statement of Housing Supply and Demand report will be used by developers and local authorities as resource in meeting housing demand.

CEO of the Construction Industry Federation, Tom Parlon, says if the government wants to meet the targets set in the report it needs to address costs in the sector: