N※N

Q2 home completions up 35% compared to last year - CSO

Surge in Irish Housing Completions Signals Progress Amid Ongoing Supply Challenges

In a significant development for Ireland's beleaguered housing market, the latest figures from the Central Statistics Office (CSO) reveal a robust increase in new dwelling completions during the second quarter of the year. The data, which tracks the number of homes finished and ready for occupation, paints a picture of accelerating construction activity that could offer some relief to the nation's chronic housing shortage. However, experts caution that while the numbers are encouraging, they fall short of the levels needed to fully address the affordability crisis gripping urban and rural areas alike.

According to the CSO report, a total of 8,456 new dwellings were completed between April and June, marking a substantial 15.2% rise compared to the same period in the previous year. This uptick builds on a trend of gradual improvement seen in recent quarters, reflecting efforts by the government and private sector to ramp up output in response to mounting public pressure. Breaking down the figures, scheme housing – typically large-scale developments by builders – accounted for the lion's share, with 4,312 units completed, up 12% year-on-year. Apartments, which are crucial for meeting demand in high-density urban centers like Dublin, saw an even more impressive growth, with 2,945 completions representing a 20% increase. Self-build homes, often favored in rural areas, rounded out the totals with 1,199 units, showing a modest 8% rise.

This quarterly performance brings the year-to-date completions to 15,789, putting Ireland on track to potentially exceed last year's annual total of around 29,000 homes. The CSO's methodology, which relies on connections to the electricity grid as a proxy for completion, ensures a reliable snapshot of actual habitable properties entering the market. Analysts note that this metric avoids the pitfalls of planning permissions or commencements, which can sometimes overstate progress due to delays in construction.

The backdrop to these figures is Ireland's well-documented housing crisis, characterized by skyrocketing rents, homelessness rates hovering near record highs, and a generation of young people locked out of homeownership. With population growth fueled by immigration and natural increases, the demand for new housing has consistently outstripped supply. Government estimates suggest that Ireland needs to build at least 33,000 to 50,000 new homes annually to stabilize the market, a target that has proven elusive despite successive policy interventions.

Housing Minister Darragh O'Brien welcomed the CSO data, describing it as "a clear sign that our strategies are bearing fruit." In a statement, he highlighted initiatives like the Housing for All plan, which aims to deliver 300,000 homes by 2030 through a mix of public and private efforts. Key measures include streamlined planning processes, increased funding for social housing, and incentives for developers to prioritize affordable units. O'Brien pointed to the role of the Land Development Agency (LDA) and local authorities in accelerating projects, noting that public sector completions contributed significantly to the quarter's totals.

However, opposition voices and housing advocates argue that the progress, while positive, is insufficient. Sinn Féin's housing spokesperson, Eoin Ó Broin, criticized the figures as "a drop in the ocean" given the scale of the shortfall. "We're still building far too few homes, and the ones we are building are often unaffordable for ordinary families," he said. Advocacy groups like the Simon Communities of Ireland echoed this sentiment, emphasizing the human cost of delays. Their latest reports indicate that over 13,000 people, including thousands of children, remain in emergency accommodation, with average rents in Dublin exceeding €2,000 per month for a two-bedroom apartment.

Delving deeper into the regional breakdown, the CSO data shows uneven distribution across the country. The Greater Dublin Area, encompassing the capital and surrounding counties, saw the highest number of completions at 3,876 units, driven by major apartment blocks in suburbs like Cherrywood and Clongriffin. This represents about 46% of the national total, underscoring Dublin's dominance in new supply. The Mid-East region followed with 1,245 completions, while the South-West, including Cork and Kerry, recorded 1,112. Rural areas, particularly in the West and Midlands, lagged behind, with self-builds making up a larger proportion but overall numbers remaining low. This disparity highlights ongoing challenges in infrastructure and planning outside urban hubs, where access to skilled labor and materials can slow projects.

From an economic perspective, the construction sector's performance is intertwined with broader trends. Inflation in building costs, which peaked at over 10% in recent years due to supply chain disruptions and rising energy prices, has begun to ease, allowing more projects to move forward. The CSO notes that timber frame and modular construction methods are gaining traction, potentially speeding up delivery times. Employment in the sector has also grown, with over 150,000 people now working in construction, up from pre-pandemic levels.

Experts from organizations like the Economic and Social Research Institute (ESRI) provide context on the implications. Dr. Kieran McQuinn, a senior economist at the ESRI, explained that while the 15% growth is welcome, sustained increases are needed to impact prices. "Housing completions influence supply, which in turn affects rents and purchase prices," he said. "But with demand projected to rise by 2-3% annually due to demographic shifts, we'll need consistent output above 35,000 units per year to see real affordability improvements." McQuinn also warned of external risks, such as potential interest rate hikes or global material shortages, that could derail momentum.

Looking ahead, the government's upcoming budget is expected to include further measures to boost housing supply. Speculation centers on enhanced tax incentives for first-time buyers, expanded shared equity schemes, and increased investment in infrastructure to unlock stalled sites. Industry bodies like the Construction Industry Federation (CIF) have called for reforms to the planning system, which they argue is bogged down by objections and judicial reviews. CIF Director General Hubert Fitzpatrick stated, "These figures show what's possible when barriers are reduced, but we need bolder action to hit the 50,000-unit mark."

The CSO report also touches on sustainability aspects, with a growing number of completions incorporating energy-efficient designs. Nearly 40% of new dwellings met or exceeded A-rated energy standards, aligning with Ireland's climate goals under the EU Green Deal. This shift not only reduces long-term costs for homeowners but also positions the sector to access green financing options.

Despite the optimism, challenges persist. Affordability remains a core issue, with the average new home price in Dublin hovering around €450,000, far beyond the reach of many median earners. Rental yields are high for investors, but this often diverts supply from owner-occupiers. Moreover, the data excludes refurbishments and conversions, which could add thousands more units if incentivized properly.

In summary, the CSO's latest housing completion figures offer a glimmer of hope in Ireland's protracted battle against housing scarcity. The 15% quarterly increase demonstrates tangible progress, driven by policy tweaks and market dynamics. Yet, as stakeholders from government to grassroots campaigners agree, this is just one step in a longer journey. Achieving the scale required will demand continued investment, innovation, and political will. For now, these numbers provide a foundation upon which to build – quite literally – a more stable housing future for Ireland.

(Word count: 1,028)

Read the Full RTE Online Article at:
[ https://www.rte.ie/news/business/2025/0724/1525144-cso-housing-completion-figures/ ]