The Small Firms Association (SFA) has warned that continually rising house prices remain the biggest threat to the Irish economy in the coming years.
The association said today that the affordability of housing was a significant barrier to "labour market development", with house prices pushing up the cost of living and driving pay demands.
It said predictions of price moderation in the housing market had proven to be an illusion and the Government needed to take action to help people on low and medium incomes to buy homes.
The SFA has suggested the introduction of a special government bond to achieve this aim.