Ireland’s housing sector is making strides, with record-breaking construction commencements in 2024 marking a significant milestone in addressing the nation’s housing crisis. However, the latest report from Construction Information Services (CIS), Ireland’s leading provider of construction project data and market analysis, reveals that despite the surge, housing completions fell short of critical government targets, exposing persistent challenges in meeting demand. The data confirms the New Dwelling Completions report recently presented by the Central Statistics Office (CSO).
The government’s ambitious Housing for All 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 CIS report highlights a record 70,412 residential units commencing construction – a 111% increase compared to 2023. This growth is largely attributed to government measures such as the development levy waiver and the Uisce Éireann rebate, which eased some of the financial burdens on developers.
Unsurprisingly, 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.
While these figures signal optimism, the report also revealed that housing completions remain a challenge. In 2024, 29,136 residential units were completed, falling short of the 33,000-unit target set by the government and representing a 2% 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.
Government initiatives have sought to prioritise social and affordable housing, yet these projects account for only a fraction of the overall housing supply. Private sector developments, often aimed at higher-income buyers or the rental market, continue to overshadow public housing efforts.
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. 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. 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.
David Thompson, Vice President (Ireland and UK) at CIS said “The record volume of housing commencements in 2024 is a positive sign for the sector and provides hope for increased completions in the coming years, with a notable impact expected in 2025 and 2026. However, we cannot ignore the ongoing challenges. Rising costs, planning delays, and an imbalance in housing priorities mean that too many Irish families remain locked out of the housing market.
“To address the affordability crisis, we need a stronger focus on incentives for developers to prioritise affordable housing, alongside streamlined planning processes and greater public sector involvement. The government has a vital role to play in ensuring these measures are implemented effectively, creating a more balanced and sustainable housing market.”
