A major think tank is warning housing supply could drop by up to 5% over the next four years.
The ESRI is blaming new mortgage lending rules which force first-time buyers to have a deposit of up to 20%.
Their latest research says there has been a dip in the number of mortgages being taken out and it is about to have a knock-on affect on the whole housing industry.
The ESRI predicts house prices and construction profits will go down, which means fewer homes are built.
The Central Bank is currently conducting its first review of the new mortgage rules introduced last year to stop the market from overheating again.