Planning data throw spotlight on housing targets
Planning data raise major doubts about the Government's ability to hit housing targets

Planning data throw spotlight on housing targets

Planning figures published by the Central Statistics Office on Wednesday confirmed, if it were needed, just how badly the State is struggling to get to grips with the housing crisis.

At a time when lack of housing is towards the top of any company’s agenda considering investing in the Republic or expanding their presence here, data showing that the number of homes approved in 2024 was the lowest in six years stand as an indictment of housing policy over recent years.

The figures were more than a fifth lower than in 2023, at 32,401 homes. Approvals for apartments fell even more dramatically – by almost 40 per cent.

Looking at the most recent period – the final three months of 2024 – the figures are even worse, with the number of homes approved down 38 per cent on the same period in 2023.

Set against the programme for government targets of an average of more than 50,000 homes a year every year between now and 2030, Wednesday’s data must give cause for concern.

Even allowing for the fact that the Government expects completions to rise each year from a more modest target of 41,000 homes being built this year to 60,000 in 2030, it is clear that this will simply not happen if we can approve no more than 32,400 homes a year.

Ministers will insist they are taking steps to ensure the necessary pipeline, pointing to incoming planning legislation among other things but the gap between last year’s permissions and the numbers required is yawning even if the legislation delivers at the upper end of expectations.

Separate data this week from construction firms show that activity in the sector has fallen, and not expanded in five of the past six months. The signals going forward are mixed at best.

Not all planning permissions lead to actual housing units, but no homes can be built without permission. Thus these figures are a key indicator of the housing pipeline and, in that regard, starkly illustrative of the sclerotic state of the Irish planning system.

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