The Housing Industry Association and the Civil Contractors Federation have warned the Albanese government its ‘Made in Australia’ plan will worsen the housing crisis.

It has claimed workforce shortages will be exacerbated by Labor’s pledge to bolster domestic manufacturing.

They say this may lead to apprentices choosing manufacturing over construction.

Coupled with rising housing costs, the housing industry believes the government’s pledge to build 1.2 million homes in 5 years is tenuous.

The warning comes as new research found building costs rose 6.2 per cent in the first quarter of the year.