Social and affordable housing account for only a fraction of the overall housing supply, and “systemic change” will be needed to address this, according to a report by Construction Information Services (CIS).
The report from one of Ireland’s leading providers of construction project data and market analysis shows that despite a record 70,412 residential units commencing construction last year – a 111 per cent increase – housing completions still fell short of targets.
The government’s housing plan, launched in 2021, aims to deliver 300,000 new homes by 2030. “While efforts to increase supply have seen progress the delivery pace has not kept up with rising demand,” the report said.
The Dublin region recorded the highest volume of commencements, with 25,269 units breaking ground in 2024. Meanwhile, the Border region saw the lowest activity with just over 3,000 units commenced.
Some 29,136 residential units were completed, falling short of the 33,000-unit target set by the government and representing a 2 per cent decline from 2023. The shortfall was most pronounced in regions like the Border, where only 1,116 units were completed, compared to Dublin’s 11,958 units.
Private sector developments, often aimed at higher-income buyers or the rental market, “continue to overshadow public housing efforts”, the report noted.
Despite construction commencements hitting record highs, Ireland’s housing sector “continues to face significant challenges in meeting demand”. Developers cite “bureaucratic planning regulations and lengthy approval times as major obstacles, slowing the pace of new projects”.
Rising costs of materials and labour shortages – exacerbated by global supply chain issues – are driving up expenses, forcing some developers to pause or scale back projects, according to CIS.
Additionally, the shortage of affordable land, particularly in urban centres like Dublin, is “intensifying competition” between private developers and local authorities.
Institutional investors are contributing to the housing supply but with a focus on high-end rental developments which “do little to address the affordability crisis” affecting many Irish households.
While short-term government measures, such as increased housing investment and relaxed planning regulations, have helped, long-term solutions will require “systemic changes”, the report said.
“Experts point to the need for incentives for affordable housing such as tax breaks or subsidies for developers, increased public sector involvement in constructing social and affordable homes as well as streamlined planning regulations that balance efficiency with sustainability and community needs.
“Though housing construction is on the rise, cost, land availability, regulatory hurdles, and affordability gaps remain key barriers. Addressing these issues will require collaboration between the public and private sectors, and a renewed focus on affordability to ensure progress aligns with demand.”
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