A lack of housing stock and affordability is at the centre of most social problems in Australia and is a sign that federation "is failing us", Social Services Minister Scott Morrison said in a speech in Melbourne.

His comments on housing affordability are in stark contrast to views recently expressed by Treasuer Joe Hockey, who last month dismissed widespread concern over housing affordability, saying that if it wasn't affordable "no one would be buying it".

Minister for Social Services, Scott Morrison. Credit:Louie Douvis

Mr Morrison addressed the issue of "compassionate conservatism" and the country's welfare policy In his speech on Wednesday to members of conservative think tank the Institute of Public Affairs.

He said the lack of a secure home was either a "cause or consequence" of many social ills and is essential for protecting Australian's welfare, especially those affected by unemployment and family breakdowns.