Irish Housing Crisis Remains 'Hard Slog' as Government Misses Targets
Taoiseach Micheál Martin has acknowledged that delivering adequate housing supply in Ireland remains a hard slog, as the government continues to fall short of its ambitious target of 50,000 new homes per year despite a significant increase in completions in 2025.
Housing remains the most dominant issue in Irish politics, with affordability and supply continuing to dominate the national agenda as the government pushes forward with a series of policy measures aimed at accelerating construction.
Background
The Irish government has set a target of delivering over 50,000 new accommodation units annually to address population growth and tackle affordability for both renters and buyers. The National Development Plan has allocated nearly €36 billion for the Department of Housing between 2026 and 2030.
Key Developments
Housing completions saw a significant 20.4% increase in 2025, reaching 36,284 units — but the Taoiseach has conceded this figure is not enough to meet the long-term goal of 300,000 new homes by the end of 2030. The government is actively shifting its policy focus towards higher-density apartment construction in urban areas, with the October 2025 budget reducing the VAT rate on apartments from 13.5% to 9%.
The Health Service Executive (HSE) has faced criticism over its handling of nearly 200 vacant properties that could be converted into homes. Labour leader Ivana Bacik accused the HSE of having a cavalier approach to the crisis, while the Taoiseach responded that the HSE had been instructed to dispose of surplus properties.
Why It Matters
The housing crisis is widely seen as the defining political challenge for the current coalition government. Failure to deliver meaningful progress on supply and affordability risks significant electoral consequences, with Sinn Féin continuing to press the government on the issue.
What's Next
The government's performance on housing will be a crucial test of its stability in 2026. Further policy measures are expected as ministers seek to demonstrate progress ahead of the next electoral cycle, according to The Irish Times.
