Sinn Féin has said that under the Government's watch, fewer people than ever before can afford to put a roof over their head.
The party's housing spokesperson Eoin Ó Broin said that just a handful of affordable homes will be delivered this year and about 8,000 a year are required to reverse the trend.
"Now as if this wasn't bad enough we learn that house prices in Dublin are to rise by 25% in the years ahead," he told the Dáil during Leaders' Questions.
The Tánaiste said how things turn out will depend on the economy and a range of other factors.
But Leo Varadkar agreed that house prices were too high and he said supply was the crucial factor in bringing supply under control.
He said that housing of all types are needed but particularly one and two-bed homes.
The Tánaiste said that about 30,000 homes have "gone to construction" in the last year.
He said it would be a shame if a Sinn Féin-led Government was to take away the help-to-buy scheme.