The Economic and Social Research Institute has warned that the gap in prosperity between Dublin and the rest of the country will increase if current trends continue, resulting in additional housing demand in the capital and increased long-distance commuting.

The ESRI has said that policies should aim to rebalance growth by encouraging regional development in a small number of large urban centres outside Dublin.

Projections up to the year 2040 show that if current trends continue the population in the Dublin and mid-east region will increase from 1.91 million in 2016 to 2.35m.

Dublin and the mideast are projected to have above average growth in the number of jobs available, while jobs growth is projected to be slowest in the border, southeast and midwest regions.

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The research found that the most positive outcomes would result when growth is split equally between the east and midland region and the rest of the country.

It said this would relieve pressure in the Dublin region, while still allowing significant growth.

The ESRI said to do this it is necessary to develop within second-tier cities the necessary infrastructure, such as water and wastewater facilities, urban public transport and schools.

It is essential that affordable housing and other amenities are provided in cities in order to attract people to live there and to avoid further sprawl, it added.