Only 6,235 commencement notices were issued in the first six months of 2025, the Department of Housing has confirmed.
By contrast, 33,784 homes commenced in the first half of 2024; while for the same period in 2023, the figure was 15,561.
On The Pat Kenny Show, Housing, Planning and Development, Construction Industry Federation Director Conor O’Connell explained why the huge variation in the figures was “not surprising, really”.
“Last year, we had 60,000 commencement notices issued,” he said.
“Those commencement notices issued were at record levels to avail of the development waiver in the water connection rebate scheme.
“So, in other words, there was a discount.”

Although the figure varies depending on the local authority, the average saving per unit for developers was €12,500 per unit.
With such a significant saving on offer, Mr O’Connell added that it put “an awful lot of housing back into the mix in terms of viability”.
“Builders took advantage of that and used up any commencements that they had available for the lands in front of them,” he said.
“That’s the reason why there was such a record level.”

However, there was a caveat; all properties have to be completed by the end of 2026.
It all means developers are focusing on those properties with the waivers.
“And this is a really important point at the moment for our housebuilding sector,” Mr O’Connell continued.
“Because over the last six months it’s been reported widely to us that there’s significant issues with connections to utilities, with getting access roads built.
“Getting finance for maybe some of the more publicly funded cost rental schemes.
“So, our members are under significant pressure to complete the units they have under way or commenced by December 31st, 2026.”

In some cases, houses have been essentially completed but the new owners cannot move in because they are waiting for an electricity or water connection.
“Unfortunately, over the last six months, there have been a number of cases where connection agreements around the substation for the Midlands and in the greater Dublin area were delayed because of what transpired,” Mr O’Connell explained.
“Because there were so many connections, there were so many applications for connections to the network, they ran out of capacity.
“It really illustrates one of the biggest critical issues for future housing supply is the provision of enabling infrastructure.
“Whether it’s our electricity networks or water networks, everything is under strain at the moment in terms of the capacity to deliver housing.”
Last year, 30,330 new homes were completed - fewer than the 32,525 built in 2023.
Ahead of the election, then-Taoiseach Simon Harris predicted that around 40,000 new homes would be built in 2024.
Main image: Micheál Martin attends a sod-turning in Dublin. Picture by: Rolling News.