Delivery of cost-rental homes for Cork's 'squeezed middle' set to plummet

The delivery of homes designed for the ‘squeezed middle’ in Cork is due to sharply nosedive, it has been claimed.

The cost-rental scheme is designed to cater to individuals who earn too much to avail of social housing supports but not enough to gain a permanent foothold on the property ladder.

To be eligible for the scheme, net incomes for households outside of Dublin must fall below €59,000.

Rents for properties in the scheme are designed to fall 25% shy of market rates, as they exclusively cover the building and maintenance of the property and feature no profit kickback to the developer. The developments are typically built by approved housing bodies.

In Cork, the Department of Housing has estimated there will be 527 and 571 properties delivered under the scheme in 2027 and 2028. 

In 2029, the department has estimated that figure will drop to 126.

“The first cost-rental scheme in Cork City received over 1,200 applications. That was for 73 apartments in one area [Lancaster Gate],” Sinn Féin TD for Cork North-Central Thomas Gould said.

Makes no sense

“It makes absolutely no sense that the Government now plans to slash cost-rental delivery in Cork in 2029. Over the course of the next three years, there will only be enough cost-rental homes delivered to meet the demand of that initial tranche of applicants. That is farcical.”

In response, housing minister James Browne noted the figures were subject to revision. He said in the coming weeks, local authorities would begin to submit new housing action plans to build more starter homes.

Significant cost rental schemes are planned at the Creamfields development on the Old Kinsale Road and the Railyard Development on Albert Quay.

Substantial affordability benefits

A research paper from the Economic and Social Research Institute (ESRI) published in April 2026 found the scheme was providing substantial affordability benefits, with the average prices of schemes being reduced by 29.9% relative to similar properties.

In Dublin, a slated development of cost rental homes was dropped because housing body Clúid was unable to deliver housing that could claw back delivery costs at a rate 25% below the market average.

A spokesperson from the Department of Housing said delivery was "less certain beyond a two-three year period."

"It is likely that additional starter home projects will be advanced for delivery towards the end of the period covered by the housing plan 2025-2030.

"A lower number currently projected for 2029 and beyond therefore does not indicate a lack of demand for cost rental or a decision to reduce the programme. Rather, the figures reflect the schemes that are currently sufficiently advanced to be included in the department’s expected delivery pipeline."