Number of new homes required each year to meet short-term demand [Video]

Approximately, 62,000 new homes will be required each year to meet short-term demand, nearly double the current rate of housebuilding in Ireland, according to Sherry FitzGerald.

The estate agent said that demand for housing continues to grow, driven largely by “demographic changes”.

A total of 32,700 new homes were completed in 2023, but completions of new homes during the first half of 2024 were down by around 8.6% year-on-year to 12,730.

Using the latest population estimates from the CSO, and assuming that the average household size will fall to the EU average of 2.3 by 2036, Sherry FitzGerald has estimated annual average housing demand of 56,200 units per annum.

Demand is heavily weighted towards the beginning of the projection period given current shortages in the market, with approximately 62,000 units per annum required at present, and Sherry FitzGerald said it is likely that the market will perpetuate a significant supply deficit in the short term due to …