Government’s €175,000 Study on Housing Costs Faces Criticism
The Irish Department of Housing has announced plans to commission a study titled the ‘Total Development Cost Study 2025’, aimed at analysing the costs involved in constructing new homes across Ireland. The study, which has a proposed budget of €175,000, has sparked debate and criticism, particularly from Sinn Féin’s housing spokesperson, Eoin Ó Broin, who questions the necessity of the expenditure.
The Department of Housing has advertised the study on the Government’s eTenders website, seeking parties interested in exploring the critical cost areas in housing. The study will focus on five regional areas: Dublin, Cork, Limerick, Galway, and the North West, and will examine five types of residential buildings. The objective is to establish a benchmark for residential development costs in Ireland and to inform policy decisions aimed at making housing delivery more affordable.
Eoin Ó Broin has expressed scepticism about the value of commissioning this report, especially given the substantial budget allocated for it. He argues that the study is likely to reiterate findings already available from previous reports by the Society of Chartered Surveyors, the Housing Agency, and the Department of Housing itself. Ó Broin suggests that the Government would be better served by fully implementing the recommendations from the Society of Chartered Surveyors regarding construction and development cost reporting.
In response, the Department of Housing has defended the study, stating that it aligns with commitments made in the Housing for All plan and the Programme for Government. The Department emphasises that understanding the cost of construction is a key priority and that previous studies have provided decision-makers with critical, independent data necessary for developing effective policy responses.
The Department further explains that the 2025 study will build upon previous research by providing an independent, comprehensive analysis of the total cost of residential development across various locations in Ireland. It will include updated construction costs from the first quarter of 2025 and will utilise data from actual developments that would not otherwise be available to the Department. This comprehensive review aims to offer a detailed understanding of all construction costs and trend analyses.
The Department also notes that the estimated budget advertised on eTenders serves as a guideline, with the final tender value subject to a competitive procurement process. A thorough evaluation of tenders will be conducted to ensure value for money.
The 2024 study revealed that the total development cost for a three-bedroom scheme house was €450,652, while a standard two-bedroom ground-floor duplex cost €466,834. A suburban two-bedroom apartment had a total development cost of €549,790, and its urban counterpart was priced at €591,783. Additionally, a student bed space in a purpose-built complex had a total cost of €207,033. The research highlighted that these costs should not be directly compared, as they vary based on factors such as location and specification.
As the debate continues, the Department of Housing remains committed to conducting the study, aiming to provide a more detailed and updated analysis of construction costs to inform future housing policies in Ireland.
