Dublin— Ireland’s ongoing housing crisis is unlikely to be resolved in the short term, according to a new report from Davy, a leading stockbroking firm. The report highlights that to meet Ireland’s growing demand, approximately 93,000 homes would need to be constructed annually until 2031. However, the current government target falls significantly short, aiming for just 60,000 homes per year.
The report raises concerns that housing supply is far below even these targets, posing a significant challenge for young families aspiring to own homes. In 2023, the government set a goal of building 33,000 homes, but only 30,000 units were completed, underscoring the persistent gap between housing demand and supply.
Population Growth Adding to the Pressure
Davy projects that Ireland’s population will reach 6 million by 2031, intensifying the pressure on the housing market. The country already faces a shortage of 230,000 homes, and current construction rates are insufficient to close this gap. According to government estimates, even accelerated construction will not fully resolve the crisis without additional measures.
Call for Comprehensive Reforms
The report emphasises that the housing crisis can only be effectively addressed through comprehensive reforms, including:
- Tightening rent controls to improve affordability.
- Reducing construction costs to incentivise development.
- Streamlining critical infrastructure projects to support housing growth.
Additionally, the report notes that implementing the Housing Commission’s recommendation to increase the share of social housing stock to 20% will take more than seven years, highlighting the long-term nature of the crisis.
Optimism with Strategic Changes
Despite the challenges, Davy’s Chief Economist Kevin Timoney expressed cautious optimism, suggesting that Ireland could potentially build up to 75,000 homes annually by 2031 if the right reforms are implemented. He also recommended prioritising apartment developments and adopting strategies to accelerate housing delivery.
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