Central Bank analysis of Irish housing market imbalances and policy recommendations (centralbank.ie)

• Central Bank estimates need for 52,000 homes per year, up from 2023 completions of about 32,000.
• Three key bottlenecks: planning/complex regulations, low construction productivity, and inadequate development finance.
• Annual additional financing requirement of €6.5-7 billion for 20,000 extra homes.
• Authors recommend policy focus on enabling supply rather than direct provision, including planning reform and innovation incentives.

"This Central Bank of Ireland signed article analyzes the persistent undersupply in the Irish housing market, attributing it to planning delays, low construction productivity, and financing challenges. Updated estimates suggest around 52,000 new homes per year may be needed to meet demographic demand and accumulated pent-up demand, requiring an additional €6.5-7 billion in development finance. The article emphasizes the need for policy measures focused on enabling supply, such as planning reform, infrastructure investment, and incentivizing private equity in construction, while noting that fiscal spending on housing has already risen to €6.5 billion annually."