Over 30,000 new homes could be completed this year, new analysis from Banking and Payments Federation Ireland shows.
Figure from the Central Statistic Office reveal that just under 7,400 units were completed between April and June of this year, down 3.5% on the same period last year.
This was due to an almost 19% drop in apartment completions, BPFI said.
In the first half of the year, just over 14,100 homes were completed, up 6% on the same period last year.
On a rolling 12 months basis, just over 30,500 units were completed at the end of June, compared with 24,841 units during the same period in 2022.
"If the sector continues to build at the rate seen in the second half of 2022, it is likely that total completions in 2023 could reach over 30,000 units," said Ali Uğur, Chief Economist of BPFI.
He said the increase in commencements in the first seven months of the year is also encouraging.
Just over 18,500 commencements were recorded, almost 2,000 more than in the same period in 2022.
The latest Housing Market Monitor from BPFI states that there remains to be significant medium-term demand for housing - both to buy and rent.
"The number of homes rented privately increased by 8% to about 331,000 between 2011 and 2022 and many of these renters are likely to seek to buy in the future," Mr Uğur of BPFI said.
"In addition, CSO Census 2022 found that more than 175,000 adults aged between 25 and 39 were living with their parents, up from 151,000 in 2011."
With increasing supply and declining price inflation, Mr Uğur said affordability pressures should ease for those expecting to buy a home in the medium-term.
The report also highlights the strong demand for mortgages among first time buyers, despite a wider market slowdown due to a fall in switching activity.
