He also said he did not accept that there is a property bubble, but added that the answer lay in building new houses.
Mr Kenny said he expected the pressure will remain in terms of housing for 18 months to two years.
The Taoiseach also said he expected that the Government will exceed its target comfortably to create 100,000 jobs by 2016.
Tánaiste Joan Burton said almost 70,000 additional jobs had been created over the last 18 months.
This latest action plan shows that 123 out of 144 measures due to be completed during the second quarter of 2014 have been implemented.
The Government also announced that a national health innovation hub will be established to support Irish businesses in the pharmaceutical and medical sector.