The government has a target to build a minimum of half a million homes across the country by 2040.
While recognising that there have been "years of undersupply" up until now, the report published this morning says that in order to achieve the goal, thousands more affordable apartments need to be built in urban centres.
The priority, the report says, is for 1 and 2 bed units.
One of the key recommendations from the Department of Housing is a change to building height restrictions.
They say apartment developments in urban areas should be at least 6 storeys tall - but rising as high as 10 storeys in strategic sites.
The report also recommends a change when it comes to car parking charges.
And it outlines plans for all housing providers having access to state land to ensure that new homes are delivered quickly and at affordable prices.
They say a failure to meet the housing targets will mean jobs being created in areas where people can't afford to live.