Minister of State for the Environment Noel Ahern did not rule out a scheme to encourage people living alone to move to smaller houses.
Mr Ahern said he was "not dismissing" the proposal, made by Fine Gael spokesman Fergus O'Dowd, adding that the scheme existed at local authority level.
"Currently the scheme does not exist for houses valued at more than €450,000. Under the new partnership agreement, a working group is being set up to look at more integrated living for older people which would provide care plus housing."
Mr Ahern said various aspects were being examined. "The voluntary sector will be involved in that side because there are older people who want to move into accommodation with independent living in the shorter term but which might have options for care. Different ideas are being examined and expanded on."
Mr O'Dowd said that about 50,000 people were living alone in houses with four or more bedrooms. "Many retired people, over the age of 65, are living in homes they can no longer maintain. These people are asset rich but cash poor."
He said the supply of housing could be increased if it was made attractive for people to move to smaller houses. "I acknowledge the commitment from some local authorities to assist that process. As many new first-time younger buyers want to get on the market, and 50,000 elderly people are in houses of four or more bedrooms, there is an inequality in terms of market supply.
"If more people can be attracted out of those homes and into smaller homes, and assisted in whatever way possible, that would be socially just, would be a constructive policy and would increase the supply of housing so that young families can get into the market."
Mr Ahern said that prevailing house price differentials meant the environment was generally favourable for people who wished to trade down.
"Ultimately, this is not merely a financial matter, but rather a question of personal choice, depending on a household's circumstances and on connections to wider family and community."
