The Government must assist first time house buyers if the population of Cork city is to be maintained and the area is to remain vibrant.
The warning came from former Cork lord mayor, Fine Gael Cllr Colm Burke, who carried out an analysis of falling numbers at primary schools within the Cork County Borough area.
According to Mr Burke, his study of Central Statistic Office figures show the number of births in Cork city and the number of children attending Cork city primary schools have fallen since 1998. However, the number of births in Cork county has risen.
"Primary schools in Cork city are suffering from a significant decline in numbers in the five years concerned. During the period from 1998 to 2002 there has been a drop of almost 7.5 per cent in the enrolment levels in the city's primary schools," said Mr Burke.
In 1998, there were 16,100 pupils enrolled in primary schools within Cork city but by 2002 this figure had dropped to 14,910.
Such figures clearly show a fall in the number of young families living in the city, said Mr Burke.
"This is a worrying development and it clearly demonstrates that it has become difficult for young people to begin to raise their families within the city boundaries," said Mr Burke, a councillor for the north west ward of Cork City Council.
"We must ask why are young people choosing to live in the county and not the city? We cannot stand back and let this trend continue. Our city needs young people and young families in order to make it a living community," he added.
New housing estates in nearby satellite towns have provided young people with a less expensive option than buying property in the city. The average new home costs €244,000 while the average second-hand house costs almost €257,000.
The majority of properties in the city are second-hand properties so on average it is more expensive to purchase in the city. It is more financially prudent if young families purchase new homes within grant size and this usually means purchasing outside of the city, said Mr Burke.