A record number of houses and apartments were built last year, official figures to be published shortly will show.
Provisional figures indicate that around 90,000 housing units were built last year, compared to almost 81,000 in 2005.
The output of social and affordable housing also increased significantly last year, although it remains low as an overall proportion of housing output at around 9 per cent.
Minister of State for Housing Noel Ahern said the number of affordable homes delivered under part five of the Planning Act - which stipulates that up to 20 per cent of new housing developments should include social or affordable units - has increased by 63 per cent.
A total of 1,912 affordable homes were delivered in the first nine months of 2006, 1,000 of which were under the part five programme. Mr Ahern said the figures showed that affordable housing obligations on developers were working and would continue to provide more units in the years ahead.
"We are now seeing the fruits from the part five legislation. The 63 per cent increase in the numbers of part five units delivered in the first nine months of this year compared to the same period last year shows a clear upward trajectory," Mr Ahern said.
"I am confident that the part five mechanism is working well and will provide a considerable share of affordable houses into the future," he said.
A breakdown of the figures shows major differences in the output of affordable housing in different local authority areas up to September of this year.
Dublin City Council delivered the most affordable housing with a total of 418 units. In contrast, just 18 units were delivered in Dún Laoghaire-Rathdown. Other good performers included South Dublin County Council (214), Fingal (177), Galway Corporation (140) and Laois (114).
In contrast, just one unit was delivered in Cork City Council and Longford, while none came on stream in Co Leitrim.
In addition over 3,900 social houses were delivered in the first nine months of the year. This is a 2.5 per cent increase over the same period last year, while a further 10,870 units are being built.
The Government has been criticised for watering down the part five mechanism in the Planning Act in the face of sustained lobbying by builders. Under changes introduced under the then minister for the environment Martin Cullen, developers were allowed to provide money or land instead of affordable housing.
Critics say it undermined what was a progressive piece of legislation. However, the Government says that in some circumstances land or money is more preferable than a small number of affordable homes in an expensive location.
