New report finds that housing output could be as little as 32,000 this year

Mitchell McDermott, a leading construction consultant firm in Ireland, has published their annual construction sector report, where they have forecasted that housing output could be as low as 32,000 units this year. 

Their belief is that Ireland’s new housing output is indeed stagnating. 

This news comes following confirmation from the central statistics office that just 30,330 homes were completed in 2024, well short of the 40,000 predicted by former Taoiseach Simon Harris, and members of government.

Mitchell McDermott says these figures are proof that housing delivery is not up to scratch, stating, “We’re going back to 2022."

On this note, their findings also determined that of the 'Fast-Track’ planning applications, which have been submitted over the last six years, just under 40% have commenced or been constructed. 

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The firm also says construction costs rose by 2% to 3% in 2024, along with an inflation increase of 3% to 4% predicted for this year. 

One of the key indicators of the future of housing output is receiving planning permissions.

The report found that planning permission was granted for just 35,000 homes last year. This is one of the lowest figures over the last six years, and down from 41,000 in 2023.

Paul Mitchell, one of the authors of the report, said unless drastic measures are introduced immediately there is little chance of the new government reaching its target of 300,000 new homes by 2030.

In order to reach that target, Ireland will need a 16% increase year-on-year on new houses and apartments, and a 5% year-on-year increase on one off homes.