Victoria is facing “key constraints” such as critical labor shortages as it continues to battle a housing crisis.

The state government is planning for 800,000 new homes to be built over the next decade, but Simonds Group CEO David McKeown says there’s still “very challenging” issues that need to be worked through.

“Clearly there’s a massive problem around the shortage of housing for Victorians,” he told Tom Elliott on 3AW Mornings.

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“But the reality is, there’s some key constraints in solving that problem and we are concerned in the short-term, unless we fix these problems it’s going to be very challenging.”