Planning permissions for new homes in Ireland plummeted by 21% last year, with a particularly sharp decline in apartment approvals, according to new data released by the Central Statistics Office (CSO).
The figures reveal that local authorities approved just 32,401 housing units in 2024, a significant drop from the 41,225 permissions granted in 2023. This dramatic decrease comes at a critical time for Ireland’s housing market, which continues to face severe supply shortages.
The decline in apartment permissions appears to be the primary driver behind this downturn, though the CSO data indicates decreases across various housing types. The reduction in planning approvals raises serious concerns about future housing supply in a market already struggling to meet demand.
Housing experts suggest this downturn could exacerbate Ireland’s ongoing housing crisis, as fewer planning permissions today will inevitably lead to fewer completed homes in the coming years. The pipeline of future housing developments is now significantly reduced compared to previous projections.
According to The Irish Examiner, the sharp decline occurs despite government targets to increase housing supply and various initiatives designed to streamline the planning process. Industry analysts point to factors such as rising construction costs, planning delays, and economic uncertainty as potential contributors to the drop in permissions.
For prospective homebuyers and renters already facing limited options and high prices, this reduction in future supply suggests that housing affordability challenges may persist longer than previously anticipated.
Government officials and housing industry representatives are likely to face increasing pressure to address the obstacles preventing more homes from receiving planning approval as Ireland continues to grapple with its persistent housing shortage.