Accommodation for 4,000 students will be built within three years
The building of accommodation for 4,000 students in three years will form part of the Government's new housing plan.
Environment Minister Simon Coveney has 100 days to draw up a plan to tackle the housing crisis.
The Taoiseach said the plan would contain a target of building 20,000 houses per year by 2018.
"If you take out the current accommodation catalogue - 4,000 units that students currently occupy - you're going to relieve that pressure on the rental market, which provides more accommodation for other people," he said.
Mr Kenny also said the plan would look at the number of planning permissions that had been issued in Dublin that had not been built.
"In some cases they have inaccessible sites, so you need infrastructure investment to be able to open up the sites. You've Grangegorman for instance there, which is a fabulous site, now because of borrowing limitations on the Institute of Technology, they're ready to start 700 student units, but under the current circumstances and the current constraints on them it'll probably be three years before they get going, so we have to look at things in shifting that," he said.
The successful model used for job creation in the previous five years, the Action Plan for Jobs, which set quarterly targets and had regular monitoring, will now be transferred into an Action Plan for Housing.
As of now, there are 10,000 more working in the construction sector than last year and the goal will be to raise that even further.