The Reserve Bank has warned construction activity could begin to decline as the number of residential building approvals falls from its peak in 2016.

The message, released in the minutes of the central bank's August meeting on Tuesday, comes a week after BIS Oxford Economics forecast a 31 per cent fall in the level of dwellings being built, from a peak of 230,000, to 160,000 within the next three years.

Any fall in the level of construction could put tens of thousands of jobs at risk. The Australian Bureau of Statistics estimates that every $1 million spent on residential construction generates 17 full-time jobs.

"The number of new residential building approvals had stepped down since 2016 and members noted that, if approvals remained at current levels, construction activity could also begin to decline," the board said.