The latest figures from the Central Statistics Office (CSO) show the annual total for housing commencements to October is 26,608 down from a peak of approximately 35,000 earlier this year.
New housing construction in Ireland continued to slow in October. A total of 1,841 units were commenced last month, down 31% year on year (yoy). A report by Goodbody Analytics has examined the reasons behind this slowdown. Both housing and apartment construction is down significantly on an annual basis, albeit for somewhat different reasons. In the three months to October, apartment commencements fell by 29% yoy, with housing scheme commencements down 23% yoy.
The report suggests viability of apartment construction has been compromised by increased construction costs and yields recently. Viability may also be an issue in terms of housing construction, but other factors, such as land availability, is also playing a role.
According to Goodbody Stockbrokers, "The commencement trends suggest that housing output may stall in the mid 20ks over the next 18 months. This is well short of the Government’s “Housing for All” target of 33K units and even further below estimated need over the medium-term."