The number of planning applications for new homes approved last year rose 21% on the previous year.
According to the CSO, 41,255 units received permission, an increase from the 34,177 in 2022.
That year, an annual decrease of 20.5% was recorded.
The CSO said the number of apartments granted planning permission rose by almost 29% when compared with 2022, while house approvals were up by more than 13%.
The number of multi-development houses receiving planning permission was up 40%.
But permissions for one-off houses fell by 27%.
The total number of Strategic Housing Developments (SHD) dwelling units approved rose 35%.
Minister for Housing, Darragh O'Brien, said the figures indicate that the pipeline for much needed homes is continuing to strengthen.
"Planning permissions were strong in 2023 and, in the same year, all our other key housing indicators continued on a positive trajectory," he said.
Ian Lawlor, managing director of Lotus Investment Group, which lends to developers said the figures were evidence that progress on housing delivery is being made, albeit from a low base.
"However the increase in planning approvals – as well as the recent growth in housing completions - needs to be seen in context," he said.
"Ireland is still playing catch up on housing and this is likely to be the case for some years yet. There was a huge decline in housing construction post-2008 and this came at a time when Ireland’s population was increasing significantly."
"The latest Census shows that Ireland’s population grew by 8.1pc to 5.15 million from 2016 to 2022. Indeed, 2022 was the first time in 171 years that Ireland’s population exceeded 5 million. The mismatch between housing supply and demand remains painfully evident."
Dermot O’Leary, the chief economist in stockbroker Goodbody, said the upward trend in permissions is in line with other housing supply indicators such as commencements and completions.
"Increased state support has played an important role in maintaining this upward trend," he said.
"Increased scale, funding and land availability also needs to be part of the next leg of growth."
