Warnings from industry leaders that the housing crisis could deepen and property prices could spiral again, if new builds stall.

The Master Builders Association says supply chain issues and rising material costs are behind a drop in sales and inquiries for new housing builds, as lending becomes tougher and banks want fixed-price contracts.

Vice-President Johnny Calley told Mike Hosking it's the hardest it's ever been to build housing.

“The forces are from all angles, so we can’t hide from the fact, it’s pretty difficult.”

LISTEN ABOVE