Business

Government not limited to its 303,000 housing target

Department responds to Davy estimate of need for up to 93,000 new homes a year

Stockbrokers Davy has predicted the State needs up to 93,000 new homes a year to tackle the chronic shortage
Stockbrokers Davy has predicted the State needs up to 93,000 new homes a year to tackle the chronic shortage
Barry O'Halloran
Thu Feb 06 2025 - 17:16

The Government’s aim for 303,000 homes to be built by 2030 is “not a ceiling” according to the Department of Housing.

Stockbrokers Davy this week predicted the State would need up to 93,000 new homes a year by 2031 to tackle the chronic shortage.

Responding to the firm’s calculations, the Department of Housing pointed out that the Economic and Social Research Institute (ESRI) had endorsed the Government’s revised 2030 target.

“Importantly, the target of 303,000 homes is not a ceiling. The crucial issue is that, ultimately, delivery meets demand,” the department said, adding that the Government will revise its targets from 2028 if demand requires it.

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The department pointed out that the new Government had pledged to build 12,000 social homes a year, the biggest programme of its kind in the history of the State.

“There is an existing substantial pipeline of social housing at various stages of progression,” a statement noted.

Davy analysts believe there will be a sharp increase in building in 2025 and 2026 as Government incentives boosted the number of homes on which builders began work last year.

Temporary waivers on water connections and levies paid to local councils could increase new home completions to 42,000 this year and 50,000 in 2026.

The firm maintains that by the end of last year, the Republic had 230,000 fewer homes than needed.

[ State must build 93,000 new homes a year to meet demand, says Davy ]

This shortage was spread around the State. Dublin and Munster needed 60,000 dwellings each. Leinster, excluding Dublin, was 70,000 down, while the shortage in Connacht was 24,000.

The firm’s report estimates that the Republic will need up to 93,000 new dwellings a year by 2031 when, it predicts, the population will hit six million.

The Department of Housing stressed its focus was on ensuring that supply met demand, adding that Government’s targets were “ambitious and credible”.

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Barry O'Halloran

Barry O'Halloran

Barry O’Halloran covers energy, construction, insolvency, and gaming and betting, among other areas

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