Standard zones for housing density would help meet the need for homes, a report on the crisis says. Photo: Mick Tsikas/AAP PHOTOS

Housing stock is going backwards and won't improve unless planning approvals for higher density are easier in every capital city, a report warns.

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While the federal government celebrates the early success of a scheme getting more buyers into their first homes, progress could grind to a halt unless more homes are built where people want to live.

Australia's capital cities are among the world's least dense and restrictive zoning is failing to keep pace with

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