Current housing output means targets for 2025 unlikely to be met, chief economist says

Eva Osborne

The current housing output means that government targets for 2025 are unlikely to be met, chief economist Kevin Timoney has said.

The number of homes completed in the first three months of the year increased by two per cent compared with the same period last year, new figures released on Thursday showed.

Completions data published by the Central Statistics Office (CSO) show there were 5,938 dwellings completed in January, February, and March in 2025.

However, the Department of Housing released figures this week that confirmed the Government missed its new-build social housing target by 1,429 last year, or 15 per cent, having also missed it in previous years.

As well as this, Central Bank has projected that the Government will miss its own housing targets by a wide margin for the next three years.

Davy chief economist, Kevin Timoney, said: “Despite growth in new apartments in Q1, house completions disappointed compared to our expectation of an increase, and our forecast of 42,000 units this year already looks unlikely to be met.

"Reforms remain necessary for housing delivery to ramp up, which is even more important as uncertainty due to tariffs slows Irish economic growth this year."

Timoney said Davy's view remains that a weak level of housing output remains likely until major reforms are fully implemented with respect to rent controls, construction costs, and the planning process.

"The stalled level of housing output far below what is needed should provide ample motivation for the new government to expedite these reforms.

"Assuming these reforms take place, and priority is placed on addressing wider infrastructure challenges (especially with respect to water and electricity/grid constraints), a pathway to far higher housing delivery continues to be available.”