Budget 2022: Treasurer Jim Chalmers to unveil landmark National Housing Accord, set to build one million houses by 2029

Australia's housing crisis has deepened over the last year, as record low rental vacancies drove soaring rent costs in both metropolitan and regional areas.

Treasurer Jim Chalmers will on Tuesday announce the National Housing Accord will bring together "all levels" of government, investors, and the construction sector in a bid to tackle the shortage.

Dr Chalmers will reveal the accord's "ambitious but achievable" aims will include the construction of a million "well located" properties over five years from 2024.

Under the agreement, states and territories will kickstart the process by freeing up land for construction, with the Commonwealth to provide financing options for investors via its Housing Australia Future Fund.

Dr Chalmers said all parties recognised the bulk of supply would be driven by market forces, with the government to smooth the path for private investment.

"We want more Australians to know the security of decent housing and more Australians realising the aspiration of home ownership," he said.

"It's more important than ever that we work together to ensure there is an adequate supply of affordable housing where it is needed - close to jobs, transport and other services."

The national rental vacancy was at a record low - just 0.9 per cent - with advertised rents jumping over 10 per cent in metropolitan areas over the past year, and 9.7 per cent in regional locations.

And the accord document warned supply and affordability issues were likely to be exacerbated by building activity declining from recent peaks.

Construction sector peak bodies have also committed to supporting high efficiency standards and boost their apprentice workforce, while private investors and superannuation funs have agreed "to increase investment in affordable housing where it is in the best financial interests of investors or members to do so".

The Commonwealth will split a commitment to build an additional 20,000 new homes directly with the states and territories, while incentivising "superannuation and institutional capital investment in social and affordable housing" to meet the remainder of the target.

The budget will include $350 million to build the federal government's 10,000 share.

The Commonwealth will also look for land under its ownership to house construction, with states and territories urged to expedite zoning and planning processes.