The first ministerial housing reference group saw representatives from Tasmania's building and construction industry involved in discussions.

Planning system challenges and the building sector's capacity to meet housing targets, were also raised as issues that need addressing.

Housing Industry Association state executive director Stuart Collins said the state needed to look at urban renewal options in cities and towns, particulary for medium-density housing.

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"It is about identifying areas where there are opportunities for regeneration, and it could be a case of rezoning where you have a rundown commercial or industrial shed that could potentially open up to some sort of housing development," Mr Collins said.

"Where you've got existing water and sewerage connections, and access to transport, it could be a much better use of that space."

He said such housing was cheaper to build. He added that planning systems would need to keep up with sector demand and change.

"There needs to be structural changes within the system, and that has been acknowledged by government, and working groups will look at how we can expedite or overcome those current impediments in the system."

While labor and building shortages are currently putting pressure on the industry, it remains optimistic about its ability to meet the government's 10,000 social and affordable housing target.

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Master Builders Association chief executive Matthew Pollock said the industry could leverage off the workforce capacity built over the last two years.

He said an expected dampening in private new dwelling investment would open up an opportunity to meet those social and affordable housing targets.

"We will need to deliver about 3300 houses at a minimum per year over the next 10 years to meet both private and public demand for new dwellings," Mr Pollock said.

"The past two years have shown that we can deliver an elevated pipeline of new housing, as long as we keep that capacity in the industry," he said.

"The industry has geared up, so if we can use the social and affordable housing program to keep that momentum, then we should be pretty well positioned to actually deliver on that program."

But he added that a larger workforce would still be needed to reach the 10,000 target.

"We still need more people and that is an issue that we need to address in parallel to the housing issue."

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