The latest Real Estate Institute of Australia affordability figures show high household incomes make Canberra the most affordable territory or state in Australia in which to own or rent a home.

But assistant governor of the Reserve Bank Philip Lowe said Australians would face higher housing and rental costs if the mix of housing construction did not keep pace with population growth.

He said dwelling increases over recent years had been below the average of the past 50 years, whereas the rate of population increase had been the fastest in 50 years.

Addressing the Urban Development Institute of Australia yesterday, Mr Lowe said more would need to be invested in housing if population growth continued and increasing housing supply would need all levels of government to be involved in planning and provision of infrastructure.

''If housing construction is very strong at the same time that the resource sector is expanding, there will be competing demands for a range of skilled workers and specialised services,'' he said.

''Managing these competing demands and ensuring the adequate supply of workers with appropriate skills will be a challenge.''

The ACT is Australia's most affordable jurisdiction, although the proportion of income needed to meet monthly loan repayments increased in the December quarter to 17.17 per cent and the average home loan rose $12,000 over 2009.

Canberra's median house price of $489,250 is closing the gap with Sydney's but high wages have kept the territory's affordability 13 per percentage points below the national average.

For more on this story, see the print edition of today's Canberra Times.