Labour has called for targeted state intervention to bridge the affordability gap in the housing market.

Senator Rebecca Moynihan said government must commit to increasing state investment in direct build housing to balance the housing market as the state is reliant on the private sector to meet it’s housing targets.

Senator Moynihan said: "A safe and secure home is the cornerstone of life. Unfortunately, we are about to experience an entire generation of young adults trapped out of the dream of home ownership. Up and down this country, people are being squeezed by the housing market.

"The report published by Daft today shows the price of homes increasing by 2.4% on average during the first three months of this year. In cities like Dublin, Cork and Galway, prices have jumped by 4% on average than this time last year. Meanwhile, people in Limerick and Waterford are almost entirely locked out of the hope of buying a house, with prices increasing by 7.6% and 9.3% respectively.

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"We know anecdotally that the pandemic has changed the type of housing needed throughout the country. This anecdotal evidence is backed up by today’s report which shows the gap narrowing between the price of homes in urban and rural areas. While the forthcoming census will provide exact detail, the data provided by Daft points to the need to increase housing stock outside of the cities.

"In addition to the chronic lack of supply of homes, people continue to experience increased rents just to keep a roof over the heads. Meanwhile, the cost of bread, pasta, milk, the essentials, continues to rise. Despite this, wages have not kept pace with the reality of the cost of living in Ireland today. That is why Labour is demanding a pay rise for workers to give people some hope of an Ireland that works."