Strong warning that housing construction will remain below target as new starts fall

A slowdown in housing starts suggests that production will fall well short of government housing targets over the next year and beyond.

Residential construction in Ireland slowed again in October, with 1,841 units starting last month. This was a 31 percent year-over-year decrease.

The total number of year starts through October is 26,608, compared to a peak of 35,000 recorded earlier this year.

According to Goodbody Analytics, recent trends suggest housing production could stagnate around the median 20,000 mark over the next 18 months.

“This is well below the government’s Housing for All target of 33,000 units and even further below estimated medium-term needs,” Goodbody chief economist Dermot O’Leary said.

Both housing and housing construction are declining annually.

Residential construction has recently been impacted by increased construction costs and yields, with housing starts falling nearly 30 percent year-on-year.

Housing construction has been heavily influenced by other factors such as land availability. Housing starts for these objects are now down almost a quarter compared to the same point last year.

“With a change of position at the top of government looming, reports over the weekend suggest the government will make renewed efforts to address the major supply problems in the market over the last two years of its tenure,” Mr O’Leary added.

Earlier this month, BNP Paribas Ireland reported that 28,000 homes are expected to be completed by the end of the year. The Bank of France’s construction activity index showed that production in Ireland fell in four of the last five months.

https://www.independent.ie/business/irish/stark-warning-that-housebuilding-will-run-below-target-as-number-of-new-starts-drop-42160237.html Strong warning that housing construction will remain below target as new starts fall

Fry Electronics Team

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