How the housing crisis is threatening Ireland’s ability to attract talent

I have worked with many candidates relocating to Ireland. Without fail, their main concern has been their inability to secure accommodation. This issue struck a personal chord with me as I too encountered these challenges during my own move to Waterford back in 2017. During recent interactions with both Irish candidates and recruiters, I have been taken aback by the escalating severity of the situation.?

Employer group Ibec has warned that housing has become a “critical barrier” to continued growth and development in Ireland.?

The Irish housing crisis is characterised by a shortage of affordable housing, rapidly increasing property prices and a lack of rental properties.

How will this crisis impact the country's competitiveness in the business world?

Talent Attraction and Retention: High housing costs and a lack of affordable options make it difficult for businesses to attract and retain talent, especially in sectors that require skilled professionals. Employees might be less willing to relocate or stay in Ireland if housing costs consume a significant portion of their income.

Cost of Living: High housing costs contribute to an overall high cost of living, affecting the disposable income of individuals. According to a survey conducted by The Economist in 2017, expatriates put Dublin fifth from the bottom of a list of 51 cities, ranked by quality of life. Their main concern? The high cost of living.?

Foreign Direct Investment (FDI): Ireland has been a hub for foreign direct investment, with many multinational corporations setting up European headquarters there due to its favourable tax environment and skilled workforce. However, the housing crisis might deter some companies from establishing or expanding their operations in Ireland. 30% of companies have identified the lack of housing as a major challenge to their business operations.?

Infrastructure Strain: The housing crisis puts strain on existing infrastructure and services, including transportation and public facilities. If employees have to contend with long commutes or inadequate public services due to housing shortages, it could impact their overall quality of life and job satisfaction.

Policy and Perception: The government's response to the housing crisis, including policies to address it, could influence perceptions of Ireland's business environment. If the crisis is not effectively managed, it might suggest shortcomings in governance and planning, potentially impacting investor confidence.

“For 2021, Ireland was the poorest performer in western Europe in terms of housing investment as a percentage of gross national income.” wrote chairwoman, Dr Francis Ruane in the National Competitiveness and Productivity Council’s competitiveness scorecard for 2023.?

While steps are being taken to remedy the housing crisis, the process of obtaining planning permission is still an arduous one. Coupled with the high cost of living, many skilled workers are setting their sights on other destinations. If you need advice on what your options are outside of Ireland, reach out to our Tax Team at Harvey John - Alex Mann | Ed Moore | Katie Thomas or Myself would be happy to give you some industry insights.?

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