A number of major construction projects in the state's South are winding down, which the Master Builders Association says will "free up" capacity to build about 80 additional affordable social housing properties each year.
On Sunday, the federal Housing Minister Michael Sukkar visited Launceston to announce that the Morrison government would be waiving the state's $157 million public housing debt, allowing Tasmania to save about $15 million a year.
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State Housing Minister Roger Jaensch has estimated the savings would enable the government to build about 80 extra dwellings each year.
With Tasmania having grappled with a skills shortage, Master Builders Association executive director Matthew Pollock said the building and construction industry had been "at capacity", particularly over the past 12 months.
"We see, moving forward, that there will be some factors that should provide some relief," he said.
"I think there's certainly capacity in the industry to deliver what the government has noted."
Mr Pollock said further capacity in the industry would be stimulated due to the fact that the Royal Hobart Hospital works were "probably past their peak", as was a large chunk of flood remediation works in the state's capital.
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A government spokesperson said the government was "working with industry to ensure they have access to the skilled workers they need" and that the number of trade apprenticeships in the state had increased by 10.4 per cent in the 12 months to March 2019 when compared to the previous year.