Central Bank forecast shows Government falling far short on housing targets, warns TD

The Government is set to fall dramatically short of its own housing delivery targets over the coming years, according to Social Democrats housing spokesperson Rory Hearne.

Deputy Hearne was speaking after the Central Bank sharply downgraded its projections for new home completions in its latest quarterly bulletin, citing shortages of critical water and energy infrastructure as major constraints on supply.

The Central Bank now expects just 32,500 homes to be built this year, rising to 36,000 in 2026 and 40,000 in 2027.

The Government’s Programme for Government pledges to deliver 300,000 homes by 2030 — a target Hearne says is “pie in the sky”.

“This is nowhere near enough to ease our housing crisis, which has turned into a social catastrophe,” he said.

“Given the previous FF/FG-led government’s false promise to deliver 40,000 homes last year – a blatant attempt to mislead voters before the general election – it is difficult to take any of their housing targets seriously.

“The Central Bank’s figures deal another blow to the government’s claims that its housing policies are working.”

Hearne said the failure to deliver homes is forcing tens of thousands of young people to emigrate, not because of a lack of jobs but because they cannot afford housing.

“Students are being locked out of third level education due to the housing crisis, while over half a million adults are still living in their childhood bedrooms, unable to start independent lives,” he said.

He accused the Government of relying on investor funds to boost supply, allowing rents to rise and apartment standards to fall, instead of taking direct action to build homes.

“The Taoiseach stated the obvious when he said the solution to the housing crisis is supply.

“However, his government’s only plan to increase supply is to allow rents to rise and reduce apartment standards to entice investor funds,” Hearne said.

“We need a Covid-style emergency response and innovative ideas to get us out of this crisis.”

The Social Democrats are calling for a new “Homes for Ireland Savings Account” (HISA) scheme, which Hearne says could use part of the €160 billion held in Irish savings to fund the construction of tens of thousands of affordable homes over the next five years.

“These homes would be delivered directly by builders employed by the State, local authorities and Approved Housing Bodies, reducing the government’s reliance on investment funds — a flawed policy choice that only results in the supply of unaffordable homes,” he said.