Housing Completions Rise As Market Shows Signs Of Recovery
The housing crisis is far away from being resolved, requiring years of sustained effort much like the banking crisis that preceded it, according to a recent report by rte.ie. Despite that overarching reality, a shift is underway with five relatively small movements in the right direction.
House completions climb toward 40,000 dwellings
The number of new homes built between July and September rose 10.4% compared to the same period last year. Total finished dwellings reached nearly 27,000 for the year up to November 2026. Analysts predict completions will hit between 39,000 and 40,000 by the end of the year, improving on the 36,000 completed in 2025.
That output remains well short of the 50,000 to 60,000 annual completions needed to meet a pent-up demand estimated at 250,000 to 300,000 homes. The Government dropped its previous annual targets in favor of an aggregate goal of 300,000 homes built between 2025 and 2030, which requires a substantial increase in yearly construction output.
Mortgage lending and older home listings increase
Bank figures show first-time buyer mortgages grew 9% year-on-year, with 22,600 home loans secured by first-time buyers so far in 2026. Move-up mortgages for existing homeowners increased 7% year-on-year, signaling higher market liquidity.
The market for older properties also showed gains. MyHome listings reached 14,600 properties for sale in September, marking a 12.5% increase from the previous year as supply constraints among potential sellers began to ease.
Property price growth slows amid ECB rate hikes
Annual property price growth decelerated to 5%, down from a 10% rate two years prior. Economists expect growth to slow further to 3% or 4% as high interest rates and strict Central Bank lending rules curb excess borrowing. The European Central Bank raised interest rates from 2% to 2.5% over recent months, with another rate hike anticipated in December, pushing buyer affordability to its limit.
Government policy changes designed to encourage investors include altered building standards, reduced VAT on new apartments, and relaxed rent controls. While the construction industry welcomed these adjustments, opposition critics pointed to tenant impacts as homeless numbers in emergency accommodation reached a record 17,885 people.
Dermot O’Leary outlines necessary policy levers
Goodbody Stockbrokers chief economist Dermot O’Leary, who served on the State’s Housing Commission, stated that multiple policy levers must be pulled to accelerate progress. He called for continued fiscal supports for the social housing sector and home ownership, faster rezoning of residential land, and a coordinated response for utility connections including water and electricity. Further reform of the planning system remains necessary.
Construction activity faces ongoing pressures from higher inflation, rising interest rates, and geopolitical uncertainty that could make investors hesitant to fund new projects.