The volume of production in the residential building sector fell 6.5 per cent in the final quarter of 2025 when compared the previous three months, data from the Central Statistics Office (CSO) shows.
The data, which is adjusted for seasonal factors, also shows residential building was down by 0.1 per cent when compared year-on-year.
Irish Mortgage Advisors chairman Trevor Grant said fall in house building activity will be “a disappointment” to people hoping to get onto the property ladder.
“Today’s report suggests that recent months have not been as promising for housing delivery as had been thought,” he said.
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“However, perspective buyers should take comfort from Government figures last week, which show there was a 73 per cent increase in housing starts in January, as well as recent CSO figures which show there was a 20 per cent increase in housing completions in 2025.
“We still need an exponential increase in the number of new homes being built in Ireland. Second-hand home stock levels have fallen to record lows and not enough new homes are coming onto the market.
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“Without a significant boost to housing supply, house price inflation will persist and homes will continue to be unaffordable for a large cohort of young people as well as the many others who wish to buy.”
He said Irish house prices are “likely to continue to be high” for the foreseeable future. “This has knock-on effects for mortgages,” he said. “Average mortgage sizes being drawn down by house buyers have reached record levels in recent months.
“This, together with the recent shift in ECB rate policy, which has seen the ECB pause its rate cuts in recent months, means it has never been more important for borrowers to be proactive about managing their mortgage costs.”
The CSO data shows the volume of production in the overall building and construction sector fell by 5 per cent in final quarter of 2025 when compared with the previous three months. On an annual basis, an increase of 0.8 per cent was recorded.
The volume index in the non-residential building sector fell 2 per cent on the previous quarter, while the volume index in the civil engineering sector dropped 6 per cent.
The value index for all building and construction was down by 3.5 per cent on a quarterly basis and up by 2.8 per cent on an annual basis.
