Ireland is building homes at a faster rate than the European average, but a substantial shortage remains and further changes are needed to increase the number of properties being delivered, according to a new homebuilding report.
More than 36,000 homes were completed in Ireland last year, with construction expected to reach approximately 40,000 completions this year.
Based on population, that amounts to about seven homes per 1,000 people, compared with an estimated European average of around three.
The figures are contained in the first Homebuilding Horizons Report produced for Glenveagh Properties by Goodbody.
The report combines Irish and European housing data with information from the homebuilding company and polling on public attitudes towards housing.
Building more homes does not end the shortage
The report argues that Ireland’s recent increase in construction needs to be matched by reforms that make higher levels of delivery possible over the longer term.
It identifies three areas as immediate priorities:
- expanding the use of Modern Methods of Construction;
- making better use of land that has already been zoned for development; and
- maintaining investment under the National Development Plan.
The report contains 40 recommendations covering different stages of the homebuilding process.
Its central argument is that increasing construction capacity alone will not resolve the housing deficit if planning, infrastructure and development constraints continue to limit the number of viable sites.
Modern construction methods highlighted
Modern Methods of Construction, commonly known as MMC, are identified as one potential way of increasing the speed and consistency of housing delivery.
The approach involves manufacturing a greater proportion of a building away from the construction site before transporting components to the development for assembly.
The report says greater use of MMC could reduce construction times, improve consistency and potentially lower costs.
It can also reduce some of the disruption caused by poor weather because more of the construction process takes place in controlled environments.
Glenveagh argues that regulatory barriers currently make it harder to expand the use of these methods in Ireland.
The company is calling for certificates issued by appropriately accredited European bodies to be recognised by Irish building control authorities where the relevant standards have been met, rather than requiring additional domestic accreditation.
Zoned land remains a key issue
The report also focuses on the amount of land that has been identified for housing but may not yet be moving quickly enough towards development.
It calls for a more consistent national approach to zoning and greater accountability around the implementation of local development plans.
The company wants the Cabinet Committee on Housing to maintain regular engagement with local authorities and the Office of the Planning Regulator.
It also argues that new ten-year development plans should be progressed as quickly as possible.
The issue is significant because having land designated for housing does not automatically mean homes can be built on it.
Planning, infrastructure, viability and other development requirements can all affect whether zoned land ultimately produces housing.
National Development Plan investment
The third priority identified by the report is continued funding for housing-related commitments under the National Development Plan.
Glenveagh argues that public investment can provide greater certainty for private developers and help unlock additional housing delivery.
The company is calling for the Government to maintain its housing commitments under the NDP in Budget 2027 while reviewing programmes including the Cost Rental Equity Loan, Capital Advance Leasing Facility and infrastructure investment.
It argues that reforms should focus on ensuring public funding remains financially sustainable while producing as many homes as possible.
Population growth is adding to the pressure
Glenveagh chief executive Stephen Garveyhttps://tuathhousing.ie/cost-rental/ said Ireland’s economic performance and population growth had created a significant housing challenge for the coming decade.
However, he argued that the country was in a stronger position to address the problem than some assessments suggest.
Garvey said the company’s experience across land acquisition, planning and construction gave it a practical perspective on the obstacles affecting housing delivery.
He also pointed to wider economic risks that could affect construction and infrastructure investment.
These include international trade disputes, geopolitical instability and energy costs, alongside longer-term pressures such as demographic change and climate considerations.
A strong construction rate still has to be sustained
The comparison with other European countries provides an important measure of Ireland’s current construction performance.
Producing around seven homes per 1,000 residents is substantially above the European average cited in the report.
But the country’s housing requirements are also unusually high because of population growth, household formation and accumulated demand.
That means a construction rate can be strong by international standards while the market continues to experience a shortage of suitable homes.
The key challenge is therefore not only how many homes are completed in one year, but whether construction can remain at a sufficiently high level for long enough to reduce the accumulated deficit.
The focus now shifts to delivery
The report’s recommendations come as Ireland attempts to increase housing supply while dealing with constraints across planning, infrastructure and construction capacity.
Its emphasis on MMC, zoning and public investment reflects three different stages of the delivery process.
Faster construction methods could increase productivity. More effective use of zoned land could expand the pipeline of viable developments, while infrastructure and State investment can help make larger-scale delivery possible.
Ireland’s recent construction figures show that output has increased significantly.
The more difficult test will be whether the country can maintain that momentum and translate higher annual completions into a sustained reduction in the housing shortage.
For households waiting to buy or rent, the ultimate measure will not be Ireland’s ranking against other European countries, but whether increased construction results in more homes that are available, affordable and suitable for the people who need them.
