The 2015 Intergenerational Report, released yesterday by Treasurer Joe Hockey, predicted Australia's population would grow about 1.3 per cent annually over the next 40 years, to 30.7 million by 2055. This means Australia will need to more than double its housing stock, an additional 9 million homes, over the next 40 years.

The property industry responded to the report by calling for the government to increase the supply of residential land, with one group promoting the idea of incentivising local councils. Master Builders Australia supports federally funded competition-style payments to councils as a reward for releasing more land and using brownfield sites for housing.

"Master Builders backs the view of the intergenerational report that more accountability and less waste and duplication must be required from these levels of government," MBA chief Wilhelm Harnisch said. "The report also highlights that more brownfield sites will be essential to meet increased demand for multi-density housing, particularly as Baby Boomers seek to increasingly 'right size' in response to their changing lifestyles."

Urban Development Institute of Australia national president Cameron Shephard said state and federal governments must work together to deliver new urban infrastructure such as roads, public transport, utilities and community infrastructure, and cut red tape and inefficient taxes such as stamp duty to encourage new home building, improve productivity, support jobs, and maintain our standard of living.

Housing Industry Association chief executive for industry policy and media Graham Wolfe said governments must remove impediments in the planning system.

The report also shows that babies born in 2055 will expect to live well into their nineties, with men living until 95 and women to 96.