Residential building up 27% but still not meeting demand

New report says highest proportion of residential buildings under construction in Dublin (6,107) and Cork (3,770) 

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The number of homes being built in Ireland increased by 27% but continues to struggle to keep up with demand, a report published on Wednesday revealed.

The GeoDirectory Residential Buildings Report, prepared by EY, found that a total of 30,508 residential buildings were recorded as under construction across the country in the second quarter of 2026, up 27.8% compared to Q2 2025.

The highest proportion of residential buildings under construction were in Dublin (6,107), Cork (3,770), Meath (2,192), Louth (2,061), and Galway (1,968).

The report also found that 37,128 new residential address points were added to the GeoDirectory database in the 12 months to June 2026, representing a 12.5% year-on-year increase.

Dublin accounted for over a third of these new address points, with 12,524 dwellings recorded, followed by Cork (4,154), Kildare (2,744), Galway (2,235), and Meath (1,964).

The highest vacancy rates in June 2026 were found in the West and North-West of the country, with Leitrim (11.5%), Mayo (10.3%), Roscommon (9.9%), Donegal (8.9%), and Sligo (8.3%) topping the national table.

At just 1.4%, Dublin was the county with the lowest residential vacancy rate, while Kildare (1.6%), Waterford (2.2%), Meath (2.4%), and Wicklow (2.4%) all registered rates lower than 2.5%.

Some 19,137 properties nationally were listed as derelict in June 2026, with the number of derelict units falling by 3.5% compared to Q2 2025. The highest concentration of derelict properties was in Mayo, with 14.2% of the national total.

GeoDirectory chief executive Dara Keogh said: “The past 12 months has seen a considerable surge in residential construction activity and new address points recorded. The figures suggest that the medium to long- term outlook is improving, but demand continues to outpace supply in the present, with house prices continuing to rise and vacancy rates remaining at record low levels.”

In Leitrim, just 94 new residential address points were added to the GeoDirectory database, with Longford (116) and Carlow (161) the only other counties to record fewer than 250 additions.

The report said that CSO data showed 49,666 residential property transactions took place in the 12 months to May 2026, and the national average house price during the period was €437,631 — an increase of 4.7% compared to the previous year. With the exception of Longford, the average house price increased in every county.

Residential property prices were highest in Dublin, with an average of €596,997 per transaction. The highest average property price in the capital was recorded in Dublin 6, at €1m. Wicklow (€527,282) and Kildare (€451,485) were the only other counties with an average transaction price above the State average.

The lowest average house prices in the 12 months to May 2026 were registered in Longford (€209,146), Donegal (€229,640), and Leitrim (€235,714).

Partner at EY Simon MacAllister said: “Passing the 30,000 mark for homes under construction represents a significant milestone for the sector, while the more than 37,000 address points added in the year to June demonstrate strong momentum in housing delivery.

“We are seeing much of this activity clustered in high-growth commuter areas, reflecting where population growth and housing demand are most acute.”