A total of 900 applications for social housing have been lodged with Tralee Town Council.
The figure was released at a meeting of the council, which was told that many of the 900 applications had not even been assessed.
Councillors heard that about 100 new units of accommodation were in the process of being built or were at the planning stage.
The town clerk, Mr John Breen, said that it would take some time before all the applicants were assessed, as the council had just one housing investigation officer.
The councillors were told that the largest number of applicants were elderly and retired single and widowed people. Separated people, some of whom would be visited by children at certain times and therefore would require units with more than one bedroom, also make up a large proportion of the applicants.
Mr Breen said that even if money and builders were available, the council simply did not have the land needed to meet the demand. He rejected a suggestion from Cllr John Blennerhasset (FG) that the Tralee town boundary needed to be extended, saying that there was plenty of serviced land within the town boundary. He explained that the council was looking at ways of acquiring land, including the use of compulsory purchase orders, if necessary.
Labour councillors said they believed the need for housing was greater than the 900 applicants listed. Cllr Miriam McGillycuddy said she knew of a lot of people "squashed in with others". She added: "They feel it's hopeless and that they have no hope of getting a home of their own."
Some councillors criticised the new requirements on local authorities to prepare an assessment of their social and affordable housing needs together with an action plan to cover a five-year period.
These plans must be submitted by May 31st and will determine funding by the Department of the Environment and Local Government.
Councils will also have to consult other accommodation agencies such as their local health boards.
Mr Breen said that the action plan would be beneficial in identifying priority needs for social and affordable housing. Arrangements with the private sector would also have to be considered to meet long-term needs.
Cllr Maeve Spring (Labour) said that the social and affordable housing action plan had "a touch of the PDs" about it. Provision of social housing was a core function of local authorities, and she feared that this was a way of transferring that responsibility to other agencies.
Many of the new requirements were what councils such as Tralee Town Council were doing already, she said.