A continued and sustained level of house building is required to meet demand because of rising job creation, the Irish Homebuilders Association (IHBA) has said.
Ireland has the greatest housing demand in Europe, and job creation is rising at a rate of 4.7 per cent, according to CSO figures released yesterday.
In a statement after the release of the figures, the IHBA said the level of job creation "will have a further impact on the demand for housing.
"As a result the IHBA predicts that there will have to be a continued and sustained level of output for 2006."
Housing completions in 2005 were in the region of 80,000 units - the 13th consecutive year of increased housing output. Some 160,000 more people are working in Ireland compared to the same time two years ago and will keep housing demand at high levels as they look to purchase their first homes, according to the IHBA.
The increase in the numbers of migrant workers and the maturing of SSIAs will also increase the demand for house, the IHBA said.
"As the Quarterly National Household Survey paints a very positive picture of the Irish economy it is certain that this can be translated into a sustained high level of housing supply and demand over the medium term," it concluded.