Local authorities either built or bought more than 1,800 houses in the first six months of the year, more than double the figure achieved in the first six months of 2000, according to housing statistics published yesterday by the Department of the Environment.
The figures show a continued moderation in house prices, with the annual rate of increase across the State standing at 12.2 per cent for the June quarter.
New house prices increased by 2.6 per cent across the State and by 0.8 per cent in the Dublin area, compared to the same quarter last year.
The Labour Party's environment spokesman, Mr Eamon Gilmore TD, described the figures as "alarming" and said only a "radical change of direction" could prevent a housing crisis on a greater scale.
"What these figures mean is that the cost of a new house has increased by between £15,000 and £20,000 in the past year", Mr Gilmore said.
"The rate of increase in the cost of new and second-hand houses, at 12 per cent, is close to three times the rate of inflation, and this at a time when the economy is slowing down."
The housing support organisation Threshold was also critical of the figures yesterday, saying that output of social housing was still clearly dwarfed by demand.
Mr Kieran Murphy, director of Threshold, said that the Department of the Environment appeared to have placed a particular focus on the social housing building programme.
"The target is that they reach 5,000 houses, either by building or buying them. If the output remains even at its current levels, the likelihood is that they won't reach the target."
Mr Murphy said he believed 2001 would be the third or fourth year in which the social housing target would not be reached.
"The size and scale of the voluntary housing sector is dwarfed by the actual need for social housing", he added.
According to Mr Murphy, there was evidence that some 60,000 households now required social housing and the voluntary sector, traditionally not a huge supplier of such housing, had also increased its output.
Threshold had seen about 20,000 people last year and the organisation expected to see even more in 2001. It was clear that many people were still having serious difficulties finding affordable, good-quality, secure accommodation.
There were many "hidden homeless" who were sharing accommodation or living in difficult conditions who could not afford homes, Mr Murphy said.
There also appeared to be an increasing number of people living in sub-standard, expensive rented accommodation.