Sinn Féin Leader Mary Lou McDonald says the Government are out of touch on housing and the homeless.
The Dublin Central Deputy has been reacting to media reports that it spent €1.2bn on buying privately built homes in the midst of the crisis.
Ms McDonald claims the Taoiseach Leo Varadkar and Minister Eoghan Murphy are in denial.
"They've never really accepted the extent or the depth of the housing crisis [or] of the homeless crisis - much of which is hidden - where you have multiple generations living under one roof," said Ms McDonald.
"And yet the Government has failed to intervene in a way that is reflective of the scale of this crisis."
Mr Vardakar admitted that the price of homes could rise as a result of Government initiatives planned to tackle climate change.
A plan to reduce carbon emissions will be published in the coming weeks and is expected to include radical proposals, such as banning gas boilers and ensuring buildings have electric car chargers.