Tasmania will home 1,600 needy residents and boost the construction industry under a 10-year affordable housing strategy, the State Government says.

Under the details released today, a four-year action plan will kick off the wider strategy, aiming to get 1,600 needy Tasmanians housing over the next four years, including 900 new homes.

The 10-year strategy will cover a wide-range of housing issues including ownership, affordable private rentals, public and community housing, and crisis accommodation.

The Government claimed the strategy would also create 550 full-time equivalent jobs and increase state economic activity by $235 million.

The Government said the four-year action plan would get an immediate investment of $13.5 million this financial year, in addition to the $9.3 million in new projects already funded in the 2015-16 budget, and the $4.4 million allocated to housing initiatives under the Safe Homes, Safe Families: Tasmania's Family Violence Action Plan 2015-20.

It said this investment would come on top of the existing $524.47 million over four years that was allocated to housing services under state and national programs.

Minister for Human Services Jacqui Petrusma told State Parliament it was the most comprehensive and affordable housing program ever undertaken in Tasmania.

"The strategy will provide housing for an additional 1,600 vulnerable Tasmanian households, and deliver around 900 new homes," she said.

"Based on industry benchmarks, this commitment will also create up to 550 full-time equivalent jobs."

Ms Petrusma said the aim of the affordable housing strategy was to protect vulnerable Tasmanians and fight homelessness.

"Without a secure home, it is difficult to live a full life and to also participate in society.

While many Tasmanians can afford private rental and we enjoy the highest level of home ownership in Australia, this situation is changing.

"Home ownership is for the first time beginning to decline, more Tasmanians are living in unaffordable private rentals, and we are confronted with more of our community being homeless.

"This situation is unacceptable and action is required to turn around these trends and improve housing affordability.

"Homelessness support services need to be able to provide rapid assistance when and where needed to get people back on their feet and into sustainable homes."