Affordability weighs on goal of 22,000 new homes

Reaching an interim target of 22,000 new homes this year may be missed because of the pressures of affordability and the fact that too few apartments are under construction, according to a new analysis.

Estimates by Goodbody chief economist Dermot O’Leary suggest that weakness in the market in the second half of last year puts into doubt expectations for 22,000 new homes to be delivered this year, while “the management of affordability, costs, and a significant increase in apartment output will be key to reaching a medium-term target of 35,000 units to meet demand”.