Builders Tell Oireachtas: Ireland's Housing Crisis Is a Delivery Problem, Not a Demand Problem
Representatives from Ireland's leading construction companies, including Cairn Homes, told the Oireachtas housing committee on 24 June 2026 that the country's housing crisis is fundamentally a delivery problem — a blunt assessment that shifts the focus of the housing debate from the question of demand to the question of why, despite strong demand and stated government commitment, Ireland continues to fall far short of the number of homes it needs to build each year.
Background
Ireland's housing crisis has been characterised by a persistent and widening gap between the number of homes needed and the number being built. The government's own analysis suggests that Ireland needs to build approximately 50,000 new homes per year to meet demand from population growth, household formation, and the need to replace ageing stock. In practice, completions have consistently fallen short of this target, with approximately 33,000 homes completed in 2025 — a figure that, while an improvement on previous years, remains significantly below what is required.
The construction industry has been a consistent voice in the housing debate, arguing that the barriers to delivery are structural rather than a reflection of any lack of willingness or capacity on the part of builders. The industry has pointed to a range of obstacles including the planning system, infrastructure constraints, labour shortages, and the cost of construction as factors that prevent it from building at the scale required.
The Oireachtas housing committee has been conducting a series of hearings on housing delivery, bringing together representatives from across the sector — including developers, housing associations, local authorities, and advocacy groups — to build a comprehensive picture of the barriers to delivery and the policy interventions that might address them.
Key Developments
The hearing on 24 June 2026 heard from representatives of major construction firms, including Cairn Homes — one of Ireland's largest housebuilders — who argued that the planning system is the single biggest barrier to housing delivery. The industry representatives cited the length and unpredictability of the planning process, the resource constraints within local authority planning departments, and the frequency of judicial reviews as factors that add significant time and cost to housing projects.
The committee also heard about the critical role of enabling infrastructure — water, wastewater, energy, and transport — in unlocking zoned land for development. Large areas of land that are zoned for residential development cannot be built on because the infrastructure necessary to support new homes is not in place. The government's €1 billion Housing Infrastructure Investment Fund, which is designed to address this gap, was discussed at length, with industry representatives welcoming the initiative but calling for faster deployment of the funding.
Labour shortages were also identified as a significant constraint on delivery. The construction industry in Ireland is facing a skills shortage across a range of trades, from bricklayers and carpenters to electricians and plumbers. The industry has called for increased investment in apprenticeship programmes and for changes to immigration policy to make it easier to recruit skilled workers from outside the European Union.
Why It Matters
The construction industry's framing of the housing crisis as a delivery problem is significant because it shifts the political debate in an important direction. For years, the housing crisis has been discussed primarily in terms of demand — the number of people who need homes — and the failure of the market to meet that demand. The industry's argument is that the market is willing and able to meet demand, but is being prevented from doing so by systemic failures in the planning and infrastructure systems.
This framing has implications for the policy response. If the housing crisis is primarily a demand problem, the solution lies in measures that stimulate demand — such as Help to Buy schemes, shared equity products, and social housing programmes. If it is primarily a delivery problem, the solution lies in measures that remove barriers to supply — planning reform, infrastructure investment, and skills development.
The reality is almost certainly a combination of both, but the industry's evidence to the committee provides important data points for a debate that has sometimes been more ideological than empirical. The specific barriers identified — planning delays, infrastructure gaps, labour shortages — are all amenable to policy intervention, and the committee's hearings are designed to build the evidence base for such interventions.
Local Impact
The barriers to housing delivery identified by the construction industry are felt differently across Ireland. In Dublin, where land values are highest and planning pressure is most intense, the planning system and infrastructure constraints are the most significant obstacles. In Cork, Galway, and Limerick, where housing markets have tightened significantly in recent years, similar barriers apply, though the specific infrastructure gaps vary by location.
In rural areas, the challenges are different but equally significant. The cost of building in rural locations — where economies of scale are harder to achieve and infrastructure costs are higher — makes it difficult to deliver homes at prices that are affordable for local buyers. The government's rural housing policy, which is currently under review, will need to address these specific challenges if it is to make a meaningful difference to housing supply outside the major urban centres.
What's Next
The Oireachtas housing committee is expected to publish its report on housing delivery barriers in September 2026, with recommendations for policy changes across the planning, infrastructure, and skills areas. The government has indicated it will respond to the committee's recommendations as part of its autumn budget package. The Housing Infrastructure Investment Fund is expected to make its first major allocations in the third quarter of 2026, with the first projects expected to break ground before the end of the year.
