The CBI said that given its social and economic benefits, housing should form the main plank of this month's Budget.
Business leaders have called for an extra 50,000 affordable homes, fresh measures to help first and second-time buyers and VAT cuts to help householders refurbishing homes.
They also want help for smaller house builders, which are struggling to access finance.
The Budget wish-list from big business echoes the Get Britain Building Campaign, which has called for more cash for affordable housing and VAT cuts on housing repair and maintenance.
Mike Leonard spokesman for Get Britain Building, said: Our message is really spreading. There is now a wide consensus that housing has to be the priority in the forthcoming Budget.
“Our economy is on the verge of a triple dip recession, we have a million under 25’s unemployed and a mounting housing crisis.
“We have long called for the Government to invest in the construction of 25,000 additional public rented homes and we urge the Chancellor to take this bold decision and find the funding required.
“Our industry stands ready to step up and deliver high quality homes using local materials and local labour.”
The CBI says the proposals should form part of a fiscally-neutral Budget which would shift £2.2bn from current spending to high-growth areas.
This would include £1.25bn on capital investment - including housing - and £950m on high-growth business tax measures.
John Cridland, CBI Director-General, said:“The Government must stick to its fiscal plan but now is the time to kick-start confidence.
“Our measures will provide another boost for the housing market and will benefit first-time buyers, those trapped in negative equity and those looking to refurbish their homes.
“To boost the construction sector, we are calling for 50,000 new affordable homes to be built, incentives for refurbishing empty homes and the housing guarantee scheme to be extended to all types of housing.
“We must supercharge the NewBuy scheme to allow second-time buyers struggling to get on the next rung of the property ladder.
“With its relatively short lead-in times, house building offers the most bang-for-buck in growth terms - unleashing pent-up demand, while creating jobs and growth.”
