FEWER THAN 25,000 new homes are unsold around the Republic, raising the risk there will be a shortage if the economy recovers, according to the Construction Industry Federation (CIF).

The industry group said official statistics show there was less than one year’s supply of new houses in the Republic based on medium-term demand.

The Department of the Environment’s national housing development survey and information from the State’s local authorities, show there are fewer than 25,000 completed new homes in the State, according to CIF.

The organisation said its own evaluation of the department’s figures shows that this is less than a one-year supply at projected normal demand for housing, which is expected to return in the medium term.

The federation pointed out that during the 1980s, a period of recession when the Republic’s population was lower than it is today, about 25,000 new homes were sold every year.

Within that, the federation said actual demand varied sharply from county to county and region to region.

“There is less than six-month supply of new and complete housing units for sale in some counties and cities, while in others there is in excess of four years’ supply,” it said.

“Meanwhile, housebuilding activity practically ceased across the country throughout 2010, with the exception of single units, which account for over 80 per cent of all housing starts.”

According to its figures, Cork city and county are likely to need 29,100 new homes between 2010 and 2016; Dublin city will need 22,400; south Dublin 20,100 and Fingal 16,600.

Laois will have a surplus of 1,700 new homes over the same period, while demand for new homes in Longford will fall 1,445 short of supply.

The CIF said the figures took into account the impact of emigration on housing demand. It stressed that its projections were contingent on the population growing at the rate predicted by the Department of the Environment.