A billionaire property developer fears that Australia's housing crisis has reached its worst point ever and will sink even further unless there is urgent intervention.

Meriton founder Harry Triguboff launched a wide-ranging attack on the federal government, the Reserve Bank of Australia, and the Big Four banks, labelling them all as out of touch. 

Mr Triguboff, who is Australia's second-richest person worth $34.1billion, issued a desperate plea to the Albanese government ahead of the May 12 federal budget.

He warned that construction will continue to stall unless the government works with the industry to address the housing crisis.

'The position with real estate in Australia has never been worse than it is right now and it’s only getting worse,' Mr Triguboff said.

'The government must act at once. For buyers and builders to be able to function, the rules must be changed now - not in a few months, but now.

'If people go broke and people don’t buy, the government loses money, not makes money.'

The median house price is above seven figures in six capital cities across Australia, with the prices set at $1,791,643 in Sydney and $1,082,728 in Melbourne.

The figure is $1,212,195 in Brisbane, $1,099,293 in Adelaide, $1,083,769 in Canberra and $1,178,522 in Perth.

House prices are lower in Hobart at $817,251 and Darwin at $734,710. 

Triguboff also took aim at the Australian Prudential Regulation Authority (APRA) in his tirade against the RBA and financial institutions. 

'The RBA can’t raise the interest rates, which makes everything worse, even though they think they are following the law,' Mr Triguboff said.

'The banks must supply the economy with much more money. Buyers must be given enough money to buy.

'APRA cannot play games. They understand that builders can’t build and buyers can’t buy.'

Inflation has soared to its highest level in almost three years, reaching 4.6 per cent - up from 3.7 per cent in February - after the ongoing Middle East crisis drove up oil prices. 

The spike has sparked fears that the RBA will hike interest rates for a third consecutive time next Tuesday, bringing the cash rate to 4.35 per cent and placing a bigger financial strain on mortgage holders during the cost-of-living crisis. 

Mr Triguboff added that Meriton was already doing its bit to stimulate housing demand. 

'I have offered finance, accepted lower deposits and charge less interest, but I would like to see more buyers,' Mr Triguboff continued.

'More people per unit will result.

'We want to know when and what changes will be made. And we, the builders and owners, need to work with the government.'

He questioned Australia's official unemployment figures.

'They talk about four to six per cent unemployment. That is the biggest joke I ever heard,' Mr Triguboff said.

'I say that the unemployment is only counted when a person can’t find work. Actually, many people get a small fraction of wages and they are counted as employed.'

Mr Triguboff issued some blunt advice for the government to focus on fixing its own problems instead of turning to other countries.

'Australia is the most desired country so let’s start discussing how it can be done,' he said.

'If it’s possible to make a profit, more will be built and the government will make more money. Surely, that’s the preferred direction.'