In a report published yesterday, the charity's said that investment in housing has declined in real terms by 26% since 1989.
Shelter say that over the next two years, cuts of 11% in the housing budget are planned by the Scottish Office.
Research and information officer Gavin Corbett said:
'Instead we have rising homelessness and growing waiting lists. Housing has been regarded as a soft target.'
Mr Corbett described this as indefensible and short-sighted, and proposed the charity's plans to counter this.
'Shelter recently set out a planned programme of investment for the next five years which would provide thousands of new affordable homes and bring back into use empty houses. Shelter's programme would create an additional 33,000 jobs in the construction and associated industries.
'A planned programme of investment must be at the heart of tackling homelessness. Cuts in the housing budget are socially unacceptable and economically unsustainable,' Mr Corbett said.