The housing body Cooperative Housing Ireland (CHI) has warned that the reported stablisation in the property market will not solve the supply of social housing.
The housing body today launched 40 new housing units in Deakin Court, Drumcondra, Dublin but has appealed to developers for more sites.
Its CEO Kieron Brennan says it can pay market price for development land.
The organisation which was founded in 1973 manages 2,400 homes across the country. Residents in each development are classed as members of the co-operative who elect the organisation's board.
The development at Deakin Court was built on Dublin City Council land with money borrowed from central government and the Housing Agency and will be repaid over 30 years.
One of the new residents is Egle Rukaner originally from Lithuania and her two Irish born daughters who spent a year in emergency hotel accommodation.
She and her eldest daughter, Gabi are particularly pleased with the security in the building with permanent neighbours compared to the transient population in the hotel.
They became homeless after their last landlord decided to sell the property.
Speaking at the launch, Housing Minister Eoghan Murphy said that recovery in the property market had caused pressure in the rental sector as some who had been forced to become landlords were now able to sell.
He said the Government had introduced a longer notice to quit period as a way of helping tenants.
Minister Murphy said more has to be done to tackle homelessness despite improvements in housing supply.