State spending in housing is “unsustainable over the long-term” and there needs to be more in private investment, Taoiseach Micheál Martin has said.
Yesterday, the Government published the new National Development Plan (NDP), which committed the State to spending €275.4 billion on infrastructure over the next decade.
The Department of Housing was one of the big winners from the review, with an allocated budget of just under €36 billion.
House building. Picture by: Alamy.com.In the Programme for Government, Fianna Fáil and Fine Gael committed to building 300,000 new homes by the end of 2030 - significantly more than were delivered in the last Dáil term.
However, speaking to Newstalk Breakfast, Taoiseach Micheál Martin admitted the Government is “way off where we wanted to be” on housing.
Despite this, he insisted that the new NDP would increase the supply of housing.
“Without the last National Development Plan and the €17 billion that was then allocated to the Housing Department for housing and related infrastructure, [it] delivered a real step change in terms of the number of houses that we’ve completed,” he said.
“Going from about 20,000 to 30 odd thousand.
“This plan, [there’s] close to €36 billion allocated to the Housing Department.
“But the private sector will have to take up a lot of the slack and contribute far more significantly over this five year plan - in addition to this what is unprecedented State investment in housing.”
This NDP Review is a landmark moment for Ireland’s future.
With a record €275.4 billion in public capital investment, we will deliver the infrastructure that will help us meet the economic and social needs of the Irish people for generations to come pic.twitter.com/KfZr2B9NrA
— Micheál Martin (@MichealMartinTD) July 22, 2025
Mr Martin continued that he wants everyone in Government to approach the housing crisis with “energy and urgency”.
“The State is the major investor in housing at the moment,” he said.
“That in itself is unsustainable over the long-term; therefore, we do need to balance housing construction a bit more evenly between the State and private sector.”
Unlocking housing🏘️
Government has today published the updated National Development Plan, with unprecedented levels of investment to secure Ireland's future.
Read more: https://t.co/XDA8DOTQCF pic.twitter.com/eG0RnlYGpQ
— Department of Housing, Local Government & Heritage (@DeptHousingIRL) July 22, 2025
Last year, the Oireachtas passed the Planning and Development Act 2024 which aims to streamline the planning process and speed up housing delivery.
However, Mr Martin added that there is still more the Government can do to help those working in the construction sector.
“I think the creation of the infrastructure division within the Department of Public Expenditure is a significant development,” he said.
“Minister Jack Chambers is leading that; he also has an external taskforce advising him in terms of issues that are blocking development.
“They will come to Government with recommendations on that front.”
Last year, there were 30,330 houses built in Ireland - fewer than the 32,525 delivered in 2023.
Main image: Taoiseach Micheál Martin. Picture by: Sam Boal/RollingNews.ie
