Extending the increased first home owners grant won't solve Australia's long-term housing affordability crisis according to the Australian Greens Housing Spokesperson Senator Scott Ludlam.

"The increased first home owners grant is no silver bullet. The housing market's got a quick shot in the arm, but that will soon pass if no action is taken to address the critical shortage of public housing."

"An investment in public housing is needed, so that we can provide people with affordable housing options. This is about providing for home security, not just home ownership."

"In many cases the grants simply inflate the price of houses, leaving renters faced with the vicious cycle of increased rents when these properties move into the rental market."

"The global financial turmoil with resultant increase in unemployment also will increase the number of families experiencing mortgage stress."

"Minister Pilbersek needs to begin planning now to ensure that there is not a dramatic decrease in housing affordability down the track."

Senator Ludlam says he's concerned the current structure of the grants scheme could be pushing people into taking on mortgages they can't really afford.

"The grant should be restructured so that it's means-tested and focused on encouraging people to purchase homes that are genuinely affordable. This means encouraging people to buy homes that are sustainable - energy efficient and linked into transport infrastructure."

"If new houses are going to get a boost - let's make them green houses."

Senator Ludlam welcomed the backing of an incentives scheme for new energy efficient dwellings by the Housing Industry Association.

"The Greens are calling for grants to be made available so that new houses can be greener houses - more energy efficient and cheaper to run."

"Australia is the sun-drenched continent - energy efficient solar houses are the way of the future," concluded Senator Ludlam.

For more information or media enquiries please call Robert Simms on 0417 174 302