THE vast majority of housing units being built in Dublin are now apartments.
Their construction is mostly financed with cuckoo money or built as social housing.
This means that only a very small number of these units are made available to households for purchase, according to an analysis of Department of Housing statistics by Goodbody Stockbrokers.
And despite 2,327 residential units as of February, the boom in new residential construction seen since the reopening of the construction sector in April last year is threatening to fizzle out.
Goodbody economist Dermot O’Leary blamed planning blockages by the courts for the decline in overall construction levels.
This jeopardizes the delivery of the hoped-for 30,000 units per year, he said.
More than half of the building permits issued by An Bord Pleanála have been stopped by judicial reviews, often because the permits were granted even though the permits conflicted with the district’s regional development plans.
Mr O’Leary noted that around seven out of ten housing starts in Dublin are now apartments.
He said: “It is government policy to encourage higher density but these units are only viable for either the private rental sector (PRS) or for the provision of social housing.
“A very small number of these units will be made available for purchase by households.”
Nationwide, a third of all housing starts are apartments.
He said the Housing Department’s figures showed the growing importance of housing for housing provision in Ireland and Dublin in particular.
And he said the overall level of housing construction may not reach the level hoped for.
“The boom in the supply of new homes in Ireland seen after the construction sector reopened in April 2021 is fizzled out as planning deadlocks by the courts pose a threat to sustaining supply of 30,000 units per year.”
Housing Ministry figures show that 2,327 housing units were started in February.
The 12-month total reached 33,000 units, a new high for this cycle.
That compares with a peak of 27,000 that came in the pandemic, indicating an impressive recovery in the supply of new homes in Ireland, Mr O’Leary said.
But the more recent trends have been weaker.
In the three months to February, housing starts were 4% lower than the same period two years earlier.
“The weakness is led by Dublin, where starts are down 40 percent on a two-year comparison,” he said.
https://www.independent.ie/business/personal-finance/property-mortgages/seven-out-of-10-housing-units-being-built-in-dublin-are-now-apartments-41478652.html Seven out of ten housing units being built in Dublin are now apartments