Taoiseach Leo Varadkar told the Dáil that a lot of people are struggling to pay rent.
He said 170,000 people had applied for the €500 rent credit and he hoped it was something Government could "build on" in future Budgets.
Most people in Ireland are now covered by Rent Pressure Zones and existing renters in these areas saw a rent hike of around 3.8% last year, the Taoiseach said.
He added that the only way to deal with high rents for "new to market properties" is through supply.
Sinn Féin Leader Mary Lou McDonald highlighted the double digit rise in rents across the country saying people are caught in a rental trap.
Some people are forking out as much as €48,000 a year in rents, while others have to pay up to €1800 every month for a room the size of car parking space, she said.
"This is all happening because Government's housing policy is failing," she told the Dáil.
Sinn Féin wants a freeze on rents for three years, a refundable tax credit for renters and an extension of the evictions ban to the end of the year.
