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Homebuilders optimistic about pick-up in supply - survey

Construction site showing cranes and scaffolding
The majority of homebuilders expect supply to increase this year and next - though many also see multiple obstacles to growth in the market

Irish homebuilders are optimistic about a pick-up in housing supply this year and next, according to a survey by Goodbody.

Its 2026 Irish Homebuilder Survey - which gathers responses from companies that account for around one third of housing completions in Ireland - found that 72% of firms expect an increase in housing supply this year.

Of those, the majority expect supply to rise by more than 20% when compared to 2025.

Based on the 36,284 dwelling completions recorded last year, according to the Central Statistics Office, that would represent more than 43,500 being completed this year.

Meanwhile, 86% of homebuilders expect supply to rise again in 2027, when compared to this year.

"There seems to be now a momentum in terms of housing supply," said Dermot O'Leary, chief economist at Goodbody. "We've seen some pickup in housing commencements, we've seen resilient demand in terms of mortgage approvals, we've seen lower interest rates and we've actually seen then an outperformance in terms of supply in 2025 with 36,000 units.

"So there seems to be some momentum in the housing supply system and I think that's reflected in the survey responses."

The survey also aimed to gague the impact legislative and regulatory changes were seen to be having on the housing market.

All respondents saw changes to the rules around the rental market, and reductions in the requirements around apartments, as being positive in terms of supply - with 71% saying it would make a significant difference.

There was also broad - but less enthusiastic support - for the reforms made to the planning system.

According to the survey, 86% said it would improve supply - but only a quarter of that predicted a 'significant improvement'. Meanwhile 14% said it would have no discernable impact.

"The issue around rent control, the issue around apartment size, the issue around private rental sector, this has obviously been something that the Government is trying to get going again after a lull period over the last number of years," he said. "The survey response seems to indicate that the industry supports these reforms and thinks that it will add to supply in the system over the next 12 to 18 months."

But while there is optimism, companies continue to see numerous roadblocks to any dramatic increase in housing completions.

In the 2026 survey, the lack of available zoned land was the most-cited issue. This was the second most common problem mentioned in the 2025 survey.

Meanwhile rising costs was among the top concerns, and this is likely to come into sharper focus in light of higher energy costs and the return of higher-than-desired inflation.

"It's important to point out in relation to this the timing; this was taken at the start of the Iran crisis," said Mr O'Leary. "We didn't know the extent of it and we still don't know the extent of it and the duration of it.

"So perhaps this survey hasn't picked up the full extent of the views in relation to that."