The Housing Minister has admitted the Government’s target of 41,000 new homes this year is “not realistic”. 

Just weeks ahead of the General Election, then-Housing Minister Darragh O’Brien announced a target of 41,000 new homes in 2025, with a promise to build 60,000 annually by 2030. 

However, once the ballots were cast and counted, officials revealed that the number of housing completions dropped from 32,525 in 2023 to just 30,330 last year. 

On Newstalk Breakfast, James Browne admitted that the low figures for 2024 mean it will be a “challenge” to meet this year’s target. 

“We had hoped for much higher figures,” he said. 

“We’ve had a consistent increase in housing delivery of about 2,500 additional units each year over the last number of years. 

“A number of years ago, we were at 20,000; we stepped up to 30,000 and we’ll see what works out by the end of this year.” 

Renters

With so little supply, rents continue to spiral upwards, with large increases recorded in particular in regional cities. 

Over a 12 month period, Daft.ie recorded a 20% increase in average rents in Limerick City, a 13.6% increase in Cork City and a 12.6% increase in Galway City. 

It all means, Minister Browne admitted, that renters are going through “an awful lot of pain at the moment”. 

“Rents are too high,” he said. 

“I have to think of not only the renters that are currently renting but those who are home in their box rooms, in their parents’ homes and need somewhere to rent where there is no housing for them to go out to rent and buy. 

“So, we’ve taken measures to increase that supply level. 

“If we continue doing what we’re doing, the pain will continue to grow as well.” 

New housing in Kildare. Picture by: Eamonn Farrell/RollingNews.ie.

Minister Browne continued that increasing supply would tackle the housing crisis in the long-term, while promising that the Government’s controversial reforms to Rent Pressure Zones would help people currently renting. 

“We’ve made a decision to extend existing planning permissions and save them,” he said. 

“That preserves the pipeline around Rent Pressure Zones; current renters and current tenancies will see no change - that’s really important for us. 

“But where we have made a change is for new properties that are commenced now; when they come on the market, the 2% cap won’t be there. 

“It will be capped by inflation - that takes away a blockage that’s preventing investors coming into this country.” 

One critic of the reform to Rent Pressure Zones noted that the ability of landlords to reset rents to market levels after a six year tenancy will mean many tenants become “incredibly vulnerable” to homelessness.

Main image: Jame Browne. Picture by: RollingNews.ie