WEALTH February 26, 2026 0 Comments

Why House Building Took a Sudden Nose Dive Last Year – And What It Means for Your Next Investment Move

Ever wonder why, despite all the fanfare and government promises, the Irish housing market seems stuck in a bit of a rut? Last year’s numbers just came in, and they’re not quite the fairy tale of booming construction we’d hoped for. In fact, house building dipped by a tiny 0.1% year-over-year and took a sharper 6.5% nosedive between autumn and winter. With a big, shiny goal of 300,000 new homes by 2030 – that’s 60,000 each year – the reality feels like a slow dance when we need a sprint. Only 36,284 new homes laid their foundations last year, and folks like David Hall from the Irish Mortgage Holders Organisation aren’t exactly popping champagne. “All the mood music is supposed to be upbeat,” he says, “but the numbers are doing the opposite.” So, what’s really holding the brakes on Irish housebuilding, and how can the market catch up before the dream slips through our fingers? Let’s dig in and unpack the numbers, the promises, and the pulse of a nation’s housing hopes. LEARN MORE

The amount of house building was down last year despite Government hopes that the supply of new homes would ramp up, new official figures show.

The rate of house building fell by just 0.1% year-on-year but it dropped 6.5% between autumn and winter last year, according to the CSO.

The Government publicly stated in November its aim to deliver 300,000 new homes by the end of 2030, which is less than five years away, making a target of 60,000 homes a year.

There were 36,284 new homes built last year, according to the CSO.

Housing campaigner David Hall, of the Irish Mortgage Holders Organisation, said: “All the mood music is meant to be in a different direction and up.

“It is very concerning when year-on-year numbers go down, the year-on-year figures take account of the seasonal issues, it is very, very worrying and concerning to see a reduction.”

Irish Mortgage Advisors chairman Trevor Grant said: “The 6.5% fall in house building activity will be a disappointment to the many people hoping to get onto the property ladder.

“The report suggests that recent months have not been as promising for housing delivery as had been thought.

“However, prospective buyers should take comfort from Government figures released last week, which show there was a 73% increase in housing starts in January – as well as recent CSO figures which show there was a 20% increase in housing completions in 2025.

“We still need an exponential increase in the number of new homes being built in Ireland. Second-hand home stock levels have fallen to record lows and not enough new homes are coming onto the market.”

house building — David Hall said: “All the mood music is meant to be in a different direction and up.” Pic: Sasko Lazarov/RollingNews.ie

The biggest driver of Irish house price inflation – currently at 7% – is the shortage of homes coupled with the pent-up demand and an expanding population, he said.

A typical home in Dublin is now €500,000 while nationally the median price is €387,000. The Department of Housing was contacted for comment.