Housing crisis deepens as 2025 construction output could miss targets by tens of thousands

Sherry FitzGerald managing director told the conference that house building in Ireland would need to double to meet the current demand levels and the current gap between supply and demand was making prices surge at higher rates in regional parts of the country. file Picture

The number of homes to be built in Ireland this year will be “nowhere near what we need” and could fall as low as 25,000, which would be a devastating blow to Government targets, a major conference has heard.

The Housebuilding Summit convened by the Construction Industry Federation heard from some of the country’s most senior civil servants and major developers, along with minister for housing James Browne. It discussed how Ireland could reach the Government’s aim of 300,000 new homes by 2030.

Speakers said the Government should pull as many levers as possible to solve blockages in planning, water and utility connections, and financing to help boost housing delivery.

It comes against the backdrop of Ireland missing its housing targets last year and the grave uncertainty posed by the Trump tariffs on the Irish economy.

Marian Finnegan, the managing director for Sherry FitzGerald Residential and Advisory, told the conference it had been clear last June the market was “under pressure” in terms of meeting the Government’s housing targets.

“I know there’s some commentary later today where it is suggested that could go as low as 25,000 this year,” she said. “I think we’re looking at a margin of plus or minus 10% on that. I do believe that all of the indicators of this sector are impossible to use as predictors.

“But what I would say is what is certain is that it will disappoint. It’s going to be nowhere near what we need.” 

Ms Finnegan said house building in Ireland would need to double to meet the current demand levels and the current gap between supply and demand was making prices surge at higher rates in regional parts of the country.

“It would be great to get some strong sense of action from the Government today,” she added.

Speaking to reporters at the conference, Mr Browne said it was too early for predictions but acknowledged concerns after home completion figures for 2024 were “very disappointing”. He also said many indicators were currently trending in the right direction.

“You’ll have a better sense of it maybe halfway through the year, usually you see a lot of properties come on through the back end of it [year],” the minister said.

He was speaking after Cabinet formally approved a revised National Planning Framework, the high-level plan for strategic development across the country.

It sets out Ireland’s housing ambition to 2030, with a target of 303,000 new houses at the end of that period.

As part of the plan, Mr Browne said local authorities must reopen their development plans and complete rezoning of land for housing before Christmas.

“I don’t see any reason why we won’t be able to access this land by the end of the year,” he added.

“The local authorities can do it quite quickly and I expect to see local authorities move with the urgency that I’m moving. The people who will be watching this expect the urgency so we can deliver those homes that we need.”