Dún Laoghaire-Rathdown has failed to meet its new housing targets and must encourage more high-density development, according to a report on the county's development plan.
The progress report on the Dún Laoghaire-Rathdown County Development Plan 2004-2010 says the council's housing strategy required 2,350 housing units to be built every year over the life of the plan.
June 2004-June 2005 was the best 12-month period for house construction in the county, yet the target could not be met.
This year, building is expected to moderate because of the refusal of planning permission for more than 2,100 units by An Bord Pleanála.
The report finds that Dún Laoghaire-Rathdown is the most expensive council area in the country in which to buy a new home, with the average one-bedroomed house selling for €372,000 and the average five-bedroomed house selling for €1.26 million.
Those few residential developments that are being permitted are being bought very speedily, the report says, with one high-rise apartment block completely sold off the plans in 50 minutes recently, although the apartments will not be available until 2008.
County manager Owen Keegan said the pursuit of high-density development was entirely appropriate given the needs of the county. He acknowledged however that it had proven to be very unpopular with many existing residents.
"A far greater effort has to be made by the council to explain the rationale for high-density development to residents and the benefits it offers."
He said the council was about to advertise for expressions of interest to undertake a study of building heights within the county.
The progress report also outlines difficulties experienced by the council in providing social and affordable housing under part V of the Planning and Development Act.
Under part V, 20 per cent of housing units given planning permission should be given over for social and affordable housing.
However, the "flexibilities" in the Act, including an option to offer funds instead of housing units, have made negotiations with developers difficult.
Since the Act was introduced, only 38 social housing units and 98 affordable housing units have been provided under part V.