Stormont's budget will only fund work on about 1,000 new social houses this year, far short of the Northern Ireland Executive's target.
The Programme for Government committed to starting work on at least 5,850 new build social homes by 2027.
That equates to about 2,000 new starts per year which would be a big step up compared to the delivery rate of recent years.
However, on the basis of the current budget the number of homes started this year will be lower than the 1,504 started last year.
Speaking in the Northern Ireland Assembly on Monday, Communities Minister Gordon Lyons, who is responsible for housing, said he was operating in a "continually constrained" budget environment.
"The assembly last year declared a housing crisis in Northern Ireland, yet we are left in a position where we're funding less the 50% of the Programme for Government housing target," he said.
Lyons has committed 80% of his available capital spending to housing.
He also raised the possibility that more money would be forthcoming, pointing out that last year's initial budget only contained enough for 400 housing starts.
He said his department will "put the same effort into driving up these figures this year as we did last year".
Lyons said it was also necessary to consider "how to do more with the money we have to build more homes", adding that he will bring some proposals to the executive.
He pointed to medium term policies, such as getting borrowing powers for the Housing Executive, which should help to increase housing supply.
Lyons described social housing as "crucial", providing "affordable, stable housing options for those who might otherwise struggle in the private rental market".
He added that its inclusion in the Programme for Government "shows the widespread support to deliver affordable, sustainable and quality housing".
'Dire situations'
Caoimhe Austin, from Londonderry, has been on the housing waiting list for three years and said she feels "despair" following Monday's announcement.
Ms Austin, who has mobility issues, said she would like politicians "to find out a bit more about the people who are waiting for houses and the type of situations that they are in.
"People are in really dire situations," she added
She said having a permanent home "would make a serious difference to my physical and mental well-being.
"There would be a huge improvement, because I would be able then to have or make the adaptations that I require that would make daily living a lot easier.
"I would have peace of mind and the potential for the ability to plan for the future depending on what happens with my health."
