With major infrastructure projects scheduled to finish soon such as the £1.35 billion Queensferry Crossing, the EY Scottish ITEM Club Summer Update is predicting growth in the Scottish economy this year to be half that of the UK.
HfS Chief Executive Nicola Barclay said research shows returning to pre-recession levels of house building by the end of this Scottish Parliament "would alone generate an additional £1.9bn in economic output and 38,000 jobs on an annual basis".
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"This report emphasises the importance of business and government working together to de-risk investment, build confidence and drive economic growth," she said.
"As well as helping to deliver the biggest return in terms of skills, jobs, productivity and the other measures highlighted by the ITEM Club, building the homes of all types that are needed to meet the requirements of our growing population also offers vital social benefits such as improved health and education outcomes.
"Whilst we need tens of thousands of new homes, latest figures show that Scotland remains in housing decline with our members telling me that it has never been harder to open new sites and get homes out of the ground.
"What we need is a supportive policy framework which encourages housing investment and development, and which enables Scotland to reap these economic and social rewards."
(LM)
