The housing crisis is undermining growth and people's wellbeing, an economic watchdog has concluded. 

The National Competitiveness and Productivity Council has called for more construction workers and the adoption of more modern building methods to alleviate the problem.

The organisation also believes the State needs to attract more workers into the construction sector if it is to meet house building targets.

“If we use what are called ‘modern methods’ of construction we end up being able to produce many more houses given the amount of labour,” Dr Frances Ruane said. 

“That’s really what you want to do.” 

Cost rental homes under construction in Dublin, 23-8-22. Image: PA Images / Alamy

Housing Minister Darragh O'Brien said the number of people working in the industry has increased in comparison to levels before the pandemic. 

“When you look at where we came from, no question we’ve a long way to go but when I took over as Minister we were delivering just about 20,000 homes a year,” he said. 

“Last year, that was 33,000 and I expect it to be significantly more this year.” 

The council also said more employment permits for workers from outside the EU would help - but it cautioned the pressure it would place on the already stretched housing market means it cannot be the only solution.

Main image: An aerial view of Dublin houses near Croke Park. Photo: Sam Boal / RollingNews.ie