New housing commencements fell to their lowest level since the Covid-19 lockdowns in the third quarter of 2025, raising fresh doubts about the Government’s plan to deliver 300,000 new homes by 2030.
With the Coalition’s new housing activation plan expected to be published tomorrow, figures from Construction Information Services (CIS) detail a significant slowdown in construction activity with new housing starts down 49 per cent year-on-year between July and September.
The decline came despite planning approvals reaching a record high and reveals what CIS described as a “significant disconnect between approved developments and actual construction activity”.
“The widening gap raises important questions about Ireland’s capacity to deliver on housing targets,” it said.
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Despite 197 residential developments worth €3.4 billion receiving planning permission in the third quarter, representing a 46 per cent increase year-on-year covering 13,500 homes, actual construction commencements declined by almost half.
Several “significant projects” did, however, commence during the quarter, including a €166 million, 817-unit Strategic Housing Development in Balbriggan, though “overall commencement volumes remain constrained”.
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The largest planning approval during the quarter was the €646 million Holy Cross development in Dublin 9, comprising 1,131 apartments.
The figures suggest last year’s development levy waiver created significant activity in 2024 but was followed by a sharp adjustment in 2025 that is now impacting housing delivery timelines.
The waiver, which temporarily suspending local authority residential contributions was extended to December 31st, 2024.
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The Uisce Éireann water connection rebate, which refunded water and wastewater connection charges, amplified the trend.
But many developers were said to have put in commencement notices for more units than they intended to start to avail of the waivers.
“The substantial shift in housing starts following last year’s levy driven activity highlights how policy interventions can create volatility in the construction pipeline,” said Dave Thompson, vice-president for UK and Ireland at CIS.
“This presents considerable challenges for meeting Ireland’s housing delivery targets,” he said.
The figures come ahead of the publication of the Government’s new housing plan “Delivering Homes, Building Communities” which will include a commitment to deliver 90,000 “starter homes” over the next five years and an additional €2.5 billion in funding for the Land Development Agency.
Overall, the Government has pledged the delivery of more than 300,000 new homes by the end of 2030.
CIS’s report highlights a similar construction pattern in the non-residential sector with 587 projects worth €1.8 billion receiving planning permission, while the value of projects actually moving into construction decreased 22 per cent year-on-year to €92 million across 394 sites.
Dublin saw new investment decline nearly 64 per cent compared to last year, while the mideast and south-west regions led activity with €204 million and €196 million respectively.
