Ireland's Housing Market is Booming: Over 500 New Homes Built in Clare, Thousands More Under Construction
The housing market in Ireland is experiencing a surge in activity, with a significant increase in the number of new homes being built and under construction. In County Clare, for instance, over 500 new homes were built between June 2023 and June 2024, while an additional 495 are currently under construction.
According to the latest GeoDirectory Residential Buildings Report, a total of 519 new residential addresses were recorded across Clare over the twelve months to June 2024. This represents a substantial contribution to the national figure of 31,384 new address points added to the GeoDirectory database.
Housing Construction in Ireland: A Snapshot
The report, prepared by EY, also revealed that 495 residential buildings were under construction in Clare as of June 2024. This is a testament to the ongoing momentum in the Irish housing market, despite some challenges.
Nationally, the number of buildings under construction in June 2024 was down 4.3%, or 991 buildings, compared to June 2023. Dublin and Cork continue to lead the way in terms of new construction, with 13.7% of all residential buildings under construction located in Dublin (2,985 buildings) and 13.0% in Cork (2,844 buildings).
Average House Prices and Vacancy Rates in Clare
In Clare, the average property transaction price in May 2024 was €262,069, compared to a national average of €381,749. This highlights the regional variations in the housing market, with certain areas experiencing greater price growth than others.
The residential vacancy rate in Clare during the second quarter of 2024 was 5.5%. This is slightly higher than the national vacancy rate, which remained at a record low of 3.9%. A total of 82,031 residential properties were recorded as vacant in Ireland as of June 2024.
Regional Housing Trends: A Focus on Cavan and Monaghan
The number of houses under construction and the number of new addresses registered across the region, including Cavan and Monaghan, is continuing to increase. However, the latest report from GeoDirectory shows that vacancy rates in Cavan and Monaghan remain above the national average of 3.9%. It's important to note that Monaghan was the only county during the second quarter of 2024 that did not report an increase in average house prices.
A Positive Outlook for Housing in Ireland
Despite the challenges, the overall picture for the Irish housing market remains positive. The surge in new construction and the increasing number of new addresses being registered suggest that the market is responding to the demand for more housing. It is expected that this trend will continue in the coming years.
Dara Keogh, CEO of GeoDirectory, expressed optimism about the future of the Irish housing market, stating: "We have seen a significant increase of over 17% in the number of new address points recorded over the past twelve months, which combined with the number of buildings under construction, suggests a strong performance in terms of housing delivery for 2024. However, demand continues to outpace supply despite considerable progress, with the average house price increasing in every county, with the exception of Monaghan, where house prices nationally are now averaging €381,749. Vacancies are at record low levels, but the total number of residential property transactions fell by 5.8% year on year."
Limerick: A Case Study in Housing Growth
Limerick is another region experiencing significant housing growth. The average house price in Limerick is currently €284,984, while 1,064 residential buildings are under construction in the county. This represents a substantial contribution to the national figure of 31,384 new address points recorded in Ireland over the twelve months to June 2024.
According to the GeoDirectory Residential Buildings Report, 825 residential buildings were under construction across Limerick in June 2024. This reflects the significant investment being made in the Limerick region, which is seeing a growing demand for new homes.
Annette Hughes, Director at EY Economic Advisory, highlighted the positive trends in the housing market, stating: “The substantial increase year-on-year in new address points and the almost 48,000 property transaction recorded in the year to May are encouraging signs for housing activity. When we dig into the details, we can see that suburban Dublin and the commuter town postcode areas like Naas (W91), Drogheda (A92) and Celbridge (W23) performed strongly on transactions. Regional postcode areas are also performing well, with the postcodes V94 in Limerick and H91 in Galway recording the highest transactions amongst the principal post town codes. While recorded construction activity is down slightly year-on-year, there has been a surge in construction commencement notices in recent months, driven largely by a number of policy changes to fast track housing development, indicating a robust pipeline of homes as we look to the future.”
Looking Ahead: A Continued Focus on Housing Delivery
The Irish housing market is facing a number of challenges, including a shortage of affordable housing and a growing demand for new homes. However, the ongoing investment in new construction, coupled with the positive trends in the market, suggest that the government's efforts to address these challenges are starting to bear fruit.
The continued focus on housing delivery will be crucial in addressing the ongoing housing crisis in Ireland. The government must continue to invest in new construction, provide incentives for developers, and implement policies that make it easier for people to access affordable housing. The future of the Irish housing market will depend on these efforts.
