Housing starts slow by 31% in October from last year

New data from the Department of Housing show that the number of new housing starts remained low in December.

Construction on 1,841 units started in October, according to commencement notices. This is lower than the September figure of 2,211 and lower than October of last year by 31%.

The rolling 12-month commencement figure is currently 26,608, which is down 14% from last year. With 34,846 starts, the number of housing starts reached a peak in March of this year.

Completions on a 12-month rolling basis were 27,773 at the end of September – up a third on last year.

An analysis by Goodbody Stockbrokers shows that in the three months to October, apartment construction fell by 29% year-on-year while housing schemes fell by 23%.

The “viability of apartment construction has been compromised by increased construction costs and yields recently,” according to its chief economist Dermot O’Leary.

He also suggests that based on current trends, housing output may stall in the mid 20,000s over the next 18 months, well below Housing for All targets.

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