The federal government announced on Wednesday evening it will inject an additional $500 million into its $3 billion low-cost financing scheme administered through the National Housing Finance and Investment Corporation.

The extra funding would bring the number of low-cost houses supported by the housing agency to more than 15,000 since its establishment in 2018.

Prime Minister Scott Morrison said the low-cost loans given to community housing providers would allow future projects to continue and provide confidence to investors.

It would also provide more social and affordable housing options to vulnerable Australians in need of a home.

"We are proud of our record of supporting Australians into home ownership, and we are also focused on those vulnerable Australians into social and affordable housing," Mr Morrison said.

"[Wednesday]'s announcement is expected to support 2500 social and affordable dwellings, in addition to the 14,000 dwellings under the supported through NHFIC in just three short years."

A Parliamentary hearing into housing affordability last month heard from industry experts, showing soaring prices in the market were doubling the time home buyers needed to save for a deposit.

It resulted in a widening wealth gap as more Australians were pushed out of the market, experts said.

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But Housing Minister Michael Sukkar said housing outcomes would be improved across the board as a result of the $500 million funding announcement on Wednesday.

"In addition to unlocking more than 6700 social, affordable and market dwellings through the National Housing Infrastructure Facility, almost 60,000 Australians have begun their journey towards homeownership through the support of the NHFIC operated Home Guarantee Scheme," he said.

The multi-million dollar boost follows a report released in October recommending a number of changes to the housing agency's act and legislative framework.

Among its key recommendations was a push to "crowd in" financiers in order to encourage more investment in the social and affordable housing sector.

The report, conducted by independent reviewer Chris Leptos, estimated the cost of social housing would reach nearly $300 billion over the next two decades and would require funding from governments and the private sector.

"NHFIC is only one part of the overall solution but it has an important role to play," the report said.

"The review considers that, as a public intermediary between community housing providers and private finance, NHFIC is uniquely positioned to catalyse greater levels of private investment in the sector by partnering with other financiers."

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