The housing sector is in its worst crisis since the Second World War, industry chiefs warned.
Jonathan Fair, chief executive of Homes For Scotland, said housing supply is "touching all-time lows".
The Scottish Government`s target of 35,000 new homes a year by 2015 may take an extra decade to achieve.
Mr Fair spoke out as Homes For Scotland, which represents around 200 organisations in the private house-building industry, launched a manifesto in anticipation of the forthcoming general election.
The organisation calls on the UK Government to introduce a mortgage indemnity guarantee so more mortgages become available.
It also wants a new obligation for state-owned banks to lend to first-time buyers and wants the stamp duty system reformed.
Mr Fair said: "Supply is touching all-time lows, with some areas showing jaw-dropping drops in the number of private new homes being started."
The number of new private homes being built is down by 90% in Edinburgh and the Borders, and by 85% in Glasgow and Fife, he said.
This is exacerbating the housing shortage which already existed before the recession.
"Therefore, continued political focus on the importance of housing investment across all tenures is the order of the day," he continued.
"Whilst there are now signs of stabilisation beginning to appear in the market, the situation is such that the Scottish Government's target of increasing the number of new homes built to 35,000 units per annum by 2015 could very likely take an extra decade to achieve."
Ongoing difficulties in the mortgage market are the main stumbling block to recovery in the sector, according to Mr Fair.
"Quiet optimism does exist but recovery depends on continued economic stability and mortgage availability throughout 2010.
"We have relied too long on rhetoric about slowly increasing lending levels delivering tangible improvements in this area and need real substantive results now."
