AUSTRALIA'S housing market might be booming, but the shape of that boom varies by town and state.

For the past year, the sharpest growth in prices has been in Sydney and Melbourne.

Research by property monitoring companies and official figures suggest the price rises appear to be the result of exuberant demand amid a trickle of new housing supply.

A report released today by CommSec's chief economist, Craig James, highlights the dynamic at work. It places NSW at the bottom of the states in economic performance, in part because so few new homes are being built. "NSW is anchored firmly at the bottom of the table and there is a fair gap to bridge," he said.

"The stronger pace of population growth may serve to provide fresh momentum for the economy, but the risk is that workers will be drawn away to the resources states."