According to the Central Bank, addressing the housing demand in Ireland requires the construction of 52,000 homes annually for the next 25 years. To reduce the deficit and meet demand over a decade, the figure jumps to almost 70,000 units per year. The lack of supply has forced many adults to live with parents or share rental housing.
The State has significantly increased housing investment from €1bn to €6.5bn yearly, but improvements in planning, land provision, and incentives for private development are needed to catch up with demand. The financial crash left scars on the construction industry, leading to underinvestment in machinery and an over-reliance on small firms.
The Central Bank’s director warns of economic costs if the housing imbalance persists, impacting living costs and business competitiveness. Economic forecasts predict 2.4% growth in 2024 and 3% in 2025, with job figures on the rise and low unemployment rates.
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