Home Builds Drop 6.7% in 2024

Irish Housing Market in 2024: A Year in Review with Dr. Áine ni Lochlainn

Despite aspiring projections, the Irish housing market experienced a disappointing 2024. Official figures reveal a significant shortfall in housing completions, prompting widespread concern about the country’s ability to address its chronic housing crisis. While government officials boasted of nearing 40,000 new homes built, the actual number fell short of expectations, leaving many questioning the effectiveness of current policies.

According to the Central Statistics Office (CSO), a mere 30,330 homes were completed in 2024, marking a 6.7% decrease compared to the previous year. This figure represents a stark contrast to the optimistic predictions made by government figures throughout the year.

Adding to the disappointment,the construction of apartments plummeted by a concerning 24%,with only 8,763 completions recorded. Even though single dwellings saw a smaller decline of 2.2%, the overall trend points towards a concerning stagnation in housing construction.

Interestingly, the distribution of completions reveals a geographical imbalance. Dublin and the surrounding mid-east region, including Kildare, Louth, Meath, and Wicklow, accounted for a significant 54.3% of all new homes built. This concentration further highlights the ongoing challenges faced by other regions striving to meet their housing needs.

Simon Harris, then-Taoiseach, confidently stated in July, “This year,⁤ we will exceed our housing targets with almost 40,000 homes built. This includes the biggest social housing build as 1975.” Similarly, Minister for Housing Darragh O’Brien reiterated this optimistic outlook in October, telling the Dáil, “The target this year under Housing for All is 33,450. I have ⁢consistently said we will exceed that target. I still ​confidently predict – the Deputy and⁣ his colleagues in Sinn Féin ​will be disappointed – that it will be the high 30,000s to low 40,000s this year.”

Eoin Ó Broin, Sinn Féin’s housing spokesperson, sharply criticized the government’s rhetoric, stating, “Throughout 2024, the Taoiseach, Tánaiste and minister for Housing said that 40,000 new homes would be built. They repeated ⁣this claim despite ‍the CSO quarterly figures​ showing new home completions plummeting.The‍ Government has‍ not only missed their social⁤ and affordable housing targets but⁢ also their overall target.the reason ⁣for the sluggish output is that⁣ the Government has refused to make the necessary reforms to public and private housing delivery. If this continues in the new government, as is highly likely, then the housing crisis will continue to deepen,”

This stark shortfall in housing completions raises serious concerns about the effectiveness of current policies and the government’s ability to address the ongoing housing crisis in Ireland. It underscores the urgent need for comprehensive reforms and innovative solutions to ensure adequate housing supply and affordability for all.

Irish Housing Market in 2024: A Year of Missed targets

The Irish housing market faced significant challenges in 2024, as new construction figures fell short of projected goals. Only 30,330 homes were completed, a noticeable dip from the anticipated 33,450. To gain a deeper understanding of these trends, we spoke with Dr. Áine Ni Lochlainn, a renowned economist and housing market expert, to explore the reasons behind this shortfall and discuss potential solutions for the future.

“it’s deeply concerning that we fell short of the Housing for All plan targets,” Dr. Ni Lochlainn stated, highlighting the urgency of addressing Ireland’s housing crisis. “The 24% decrease in apartment construction is especially worrisome, given the desperate need for affordable living options in Dublin and other urban areas.”

The government had initially projected a construction total of 40,000 homes. Dr. Ni Lochlainn attributed the significant drop to a confluence of factors, including labor shortages within the construction industry, persistent supply chain disruptions, and overly complex planning regulations that hinder growth. However, she emphasized that the lack of affordable financing options for both developers and potential homeowners was the most pressing obstacle.

Interestingly,while single-dwelling construction experienced a slight decline,scheme dwellings,which are government-funded affordable housing units,saw a 4.6% increase. This suggests that state-backed housing initiatives are more resilient during economic downturns. Nonetheless, the fact that these scheme dwellings accounted for only 17.7% of all completions underscores the necessity for more robust support mechanisms for affordable housing endeavors.

As we look ahead, Dr. Ni Lochlainn believes a multi-pronged approach is essential to address the ongoing housing crisis.This includes streamlining planning processes, incentivizing developers to construct affordable housing, and expanding access to financing options for both developers and homebuyers.

Tackling the Housing Crisis: Experts Call for Bold Action

2024 presented significant challenges in the housing market, leaving many feeling disheartened. But as we look towards 2025, experts like Dr. Ni Lochlainn are urging for transformative change. He emphasizes the need for targeted reforms that simplify planning processes, ultimately leading to more enduring and affordable housing developments.

Improving access to finance for both buyers and developers is crucial, Dr. Lochlainn argues. “I’d like to see targeted reforms that simplify planning processes, encourage enduring and affordable development, and provide better access to finance for both buyers and developers,” he states.

The housing expert believes we must also explore innovative solutions to meet the diverse needs of a growing population.”additionally, we should consider innovative solutions like modular housing and co-living spaces to meet the diverse housing needs of our growing population,” he suggests.

Looking ahead, Dr. Lochlainn offers clear advice to the incoming government: “They must prioritize affordability and sustainable development.” He stresses the importance of addressing the root causes of the crisis, which include a lack of supply, rising prices, and inadequate affordability. “This means tackling the root causes of the crisis – lack of supply, rising prices, and inadequate affordability – by enacting extensive and enterprising reforms,” he emphasizes.

He warns that anything less than a comprehensive approach will only provide temporary relief.”Anything less will merely treat the symptoms, not the cause,” Dr. Lochlainn concludes.

How does Dr. Áine Ni Lochlainn believe the government can address the geographical imbalance in housing completions in Ireland?

archyde Interview: Dr. Áine Ni Lochlainn on the Irish Housing Market in 2024

Archyde: Dr. Ni Lochlainn, thank you for joining us today to discuss the Irish housing market in 2024. The year saw a meaningful shortfall in housing completions, with onyl 30,330 homes built, falling short of the projected 33,450. What factors do you think contributed to this shortfall?

Dr.Áine Ni Lochlainn: thank you for having me. The shortfall in housing completions is indeed a cause for concern. Several factors contributed to this issue. One of the primary reasons is the ongoing skills shortage in the construction sector. Brexit and the aftermath of the COVID-19 pandemic have exacerbated this problem, leading to labor shortages and increased construction costs.

Another significant factor is planning permission processing times. The approval process for new developments remains lengthy and complex, frequently enough delaying construction starts.Additionally, the rising cost of materials and increasing regulations have made new home construction more expensive and challenging.

Archyde: the construction of apartments saw a worrying 24% decrease. Why is this particularly concerning, and what can be done to reverse this trend?

Dr. Ni Lochlainn: The decrease in apartment construction is deeply concerning, given the urgent need for affordable living options, particularly in urban areas like Dublin.Apartment living is more space-efficient and can cater to the growing demand from young professionals, families, and older adults who wish to downsize. However, several barriers exist for apartment developments, including zoning restrictions, height limits, and opposition from local communities.

To reverse this trend, we need to address these barriers and promote high-density, well-designed apartment developments. This could involveincentivizing apartment construction through tax breaks, fast-tracking planning permissions, and providing additional funding for infrastructure and social amenities. Moreover, public engagement and education on the benefits of apartment living are crucial.

Archyde: We’ve seen a geographical imbalance in housing completions, with Dublin and its surrounding regions accounting for 54.3% of all new homes built. How can the government address this imbalance and ensure that other regions receive adequate housing supply?

Dr. Ni Lochlainn: The geographical imbalance highlights the need for a more targeted and regional approach to housing policy. The government should allocate resources more effectively to areas with acute housing needs, such as Cork, Galway, Limerick, and waterford.

This could involve providing additional funding for infrastructure, public transport, and social amenities in these regions to make them more attractive for growth. Streamlining the planning process outside of Dublin could also encourage more housing construction in these areas.

Moreover, the government should work with local authorities to identify suitable sites for new housing developments and facilitate their timely delivery. Targeted tax incentives for developers building outside of Dublin could also help to address this imbalance.

Archyde: The Housing for All plan aims to deliver 33,000 new homes per year by 2025. Given the shortfall in 2024, do you believe this target is achievable, and what changes need to be made to turn the situation around?

Dr. Ni Lochlainn: Achieving the Housing for All targets requires a significant shift in policy and an ambitious approach to housing delivery. While the shortfall in 2024 is concerning,it’s not too late to turn the situation around. However, this will require the new government to prioritize housing as a key policy area and take decisive action.

Some of the changes needed include addressing the skills shortage in the construction sector, simplifying planning processes, and providing adequate funding for housing infrastructure. The government should also explore innovative housing solutions, such as modular construction and co-living arrangements, to increase housing supply and affordability.

Moreover, the government must engage with the public, industry stakeholders, and local authorities to develop a comprehensive and effective housing strategy that delivers real results for Ireland’s housing crisis.

Archyde: Dr. Ni Lochlainn, thank you for sharing your insights on the Irish housing market in 2024 and providing practical solutions for the future. We hope that the new government takes your recommendations into consideration to address Ireland’s enduring housing crisis.

Dr. Áine Ni Lochlainn: You’re very welcome. I’m eager to see the new government take bold action on housing to address the urgent needs of Ireland’s citizens. Thank you for the chance to discuss this critical issue.