The Government has faced intense criticism over its proposals for co-living arrangements, where 42 people would share a communal kitchen in one proposed development in Dublin.
Sinn Féin, Labour and People Before Profit challenged the Minister for Housing, Eoghan Murphy, over his "new pet project", which they argue is not a viable solution to the rental crisis.
But Mr Murphy has argued that the co-living proposals are just one element of the Government's response to the housing crisis and they were developed looking at best practice abroad.
Sinn Féin's deputy leader Pearse Doherty was critical of the Minister for Housing's "new pet project".
He said the minister wants people to be excited about the co-living solution to the rental crisis.
But he added: "If you look at what is being developed in Dún Laoghaire for example, there is 208 studios over 6,500 square metres on one floor. That is 42 people who will share one kitchen with rents in excess of €1,300 per month."
He said that this is not a solution and it is "a step on the road of tenements of the 21st century."
Responding, Mr Murphy said these guidelines "are not a response to the crisis in and of themselves".
He said "We are trying to bring a future housing market that provides choices for every type of person in this country. People need choice. Choice should not be the privilege of the few. It should be there for everyone. That is what we are trying to do, especially for people coming here for a year or six months or two years."
He said that co-living "has been welcomed and been successful in some of the cities we are trying to emulate".
Mr Murphy cautioned that people should not rush to judgment on the basis of one planning application.
He said that plans are in train for a Cost Rental solution to the crisis. He said that in everything the Government does in the area of housing, it is trying to "protect people from the mistakes that happened in the past into future so they can have sustainability, security and affordability where they live."
People Before Profit TD Richard Boyd Barrett claimed the proposed Bartra co-living development in Dún Laoghaire is a "shameful, greed driven development".
He asked the minister if he has reflected on "whether a 16 square metre room with a fold out bed where people would be paying €1,300 is the sort of accommodation that we need to address the housing crisis?"
He claimed that this is a "manifesto for modern day tenements. 42 people sharing a kitchen. This is just greed and profiteering by some of the Celtic Tiger developers who helped crash this economy. Now they are at it again on a site that local people have been campaigning to get public housing on for years."
Mr Murphy repeated that people should not rush to judgment on the basis of one planning application as these guidelines, introduced a year and a half ago, have worked well in other cities for some people who want that choice.
"These are new guidelines. The first applications are coming in so of course we will keep them under review but they were developed looking at best practice abroad."
He said he believes they will bring benefits to people who are going to be working for a short time in this country.
During Leaders Questions, Labour Party leader Brendan Howlin described the proposal for co-living apartment schemes as ludicrous and an attempt to normalise cramped living conditions and erode public housing standards.
He said the Government was going back to reducing standards so that people can live on top of one another creating the social crisis of the future.
In response, the Taoiseach Leo Varadkar said new housing of all different types is needed and the solution is not in any particular model.
He said progress was being made and 18,000 new houses and apartments were built in Ireland last year.
He said the Government was aiming for 10,000 new builds this year.
Additional reporting - Aisling Kenny
