The Central Statistics Office reported a significant decline of over 12% in new home completions in the first quarter of the year in Ireland. This decrease, from 6,600 to 5,841 completions compared to the same period last year, poses a risk to the Government’s housing targets for 2024. As the demand for housing continues to outstrip supply, industry experts are highlighting the urgent need for increased construction to address the housing crisis and make homeownership more attainable for young people.
The recent data on new home completions in Ireland has raised concerns about meeting the ambitious housing targets set by the government. In this article, we delve into the implications of the decline in new home completions, the challenges it poses for prospective homeowners, and the calls for a significant boost in construction to bridge the gap between supply and demand in the housing market.
Impact of Declining New Home Completions:
The 12.1% decrease in new home completions compared to the previous year signals a worrying trend in Ireland’s construction sector. With only 5,841 new dwellings completed in the first quarter of the year, there is a growing gap between the demand for housing and the available supply. This shortfall not only jeopardises the government’s housing targets for 2024 but also exacerbates the existing housing crisis in the country.
Government Housing Targets and Current Challenges:
In light of the recent decline in new home completions, the government’s Housing for All strategy, which aims to achieve 34,600 completions this year, faces a significant obstacle. The strategy, which includes targets of 36,100 completions in 2025 and 36,900 in 2026, may be at risk of falling short if the construction pace does not accelerate to meet the growing demand for housing.
Industry Response and Calls for Action:
Ian Lawlor, the managing director of Lotus Investment Group, expressed disappointment over the latest figures on new home completions. He emphasized the critical need for an increased supply of housing to address the rising house prices and enable young individuals to enter the property market. Lawlor highlighted the importance of aligning annual supply targets with the actual housing needs, advocating for a substantial rise to between 50,000 and 60,000 new homes annually.
The mismatch between supply and demand in the housing market continues to hinder first-time buyers, with properties in housing developments quickly selling out, frustrating their efforts to secure homeownership. Industry leaders stress the urgency of ramping up construction efforts to not only stabilise house price growth but also provide more opportunities for individuals to own their own homes.
The decline in new home completions in Ireland poses a significant challenge to the government’s housing targets and exacerbates the housing crisis in the country. With demand for housing outstripping supply, there is a pressing need for a substantial increase in construction to bridge the gap and make homeownership more accessible. Industry experts emphasise the importance of aligning supply targets with housing needs to address the current challenges and create a more sustainable housing market for all individuals in Ireland.
