A major think tank is warning housing supply could drop by up to 5 per cent over the next 4 years.
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The ESRI is blaming new mortgage lending rules which force first time buyers to have a deposit of up to 20 per cent.
Their latest research says there's been a dip in the number of mortgages being taken out and it's 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.
