The Minister for Housing, Eoghan Murphy, says Rent Pressure Zones are working but the number of homeless families nationally is growing.
Mr Murphy gave an update to the Dáil’s Housing Committee this morning.
The Government will later publish the latest homelessness figures which show a fall in homeless families in Dublin, but an increase around the country.
Minister Murphy says he believes other towns will qualify for the pressure zones because of rising rents.
He said: "Rent Pressure Zones are working and the data for Dublin shows us that. If the trend for this year continues it will be about 3% inflation in Dublin, last year it was 8.5%.
"That does make a difference, when you are paying a high rent of €1500, which most people are in Dublin, and I think it is good that we saw two new areas qualify in Drogheda and Greystones.
"Ideally we wouldn't see it, because the rent wouldn't be increasing, but we will more than likely see over the coming quarters more areas fall into those zones."