Housing construction plummets to lowest level in decade

James Cox

Housing activity has fallen to its lowest level in almost a decade.

A total of 16,412 commencement notices were filed last year, the lowest total since 2016.

A commencement notice is an indicator of planned residential construction, showing intentions to start building.

Meanwhile, 69,000 notices were received in 2024, boosted by temporary incentives, including waived development levies and water connection rebates.

However, the Department of Housing says more than 85,000 notices were received across 2024 and 2025 combined, over 40 per cent higher than the previous two years.

There were signs of recovery in December, with just over 3,000 notices submitted, double the previous month, with apartments making up more than half.

Davy Research said the December figures were a positive.

Their research found a need for 4,000 homes to be commenced each month to be consistent with the Government target of more than 50,000 homes a year for the remainder of the decade.