Ireland's Housing Output Set to Reach 40,000 Units Next Year, Leading New Completions in Europe
IRELAND: Ireland is projected to lead the way in new housing completions among 19 European countries this year as it works to meet ambitious completion targets.
According to the EY-Euroconstruct monitor, housing completions per 1,000 people in Ireland are expected to reach 5.9 in 2024, rising to 7.0 by 2025. These figures are forecast to be more than 80% above the European average in 2024 and 127% higher in 2025.
Overall, Irish construction output, including non-residential and civil engineering projects, is predicted to grow by 1.4% in 2024 and by 6% in 2025—the highest growth rates in the Euroconstruct region. The CSO reports that nearly 9,000 homes were completed in the third quarter of 2024, with 21,643 new homes built in the first nine months of the year—3% less than during the same period in 2023.
State and non-governmental organizations have set annual targets ranging from 30,000 to 50,000 new homes to address the ongoing housing shortage. EY-Euroconstruct forecasts Ireland will build around 32,000 homes in 2024, increasing to 38,000 in 2025 and 40,000 by 2026.
Despite progress in residential construction, the broader Irish construction sector faces challenges, such as the continued impact of rising building material costs. Excluding residential projects, overall construction output is expected to grow by 3.3% in 2024, though growth will slow to 0.8% in 2025 due to a reduction in new office buildings.
Recent data also highlights a significant skills shortage in the construction sector. According to a report by IrishJobs, site managers have seen a 39% increase in demand over the past year, making them the most sought-after profession in construction. Site engineers and project managers also rank among the top five in-demand roles.
Source: Euroconstruct