Ireland’s housing stock has hit new historic low - Sherry FitzGerald

The State is experiencing a “severe shortage” in available housing stock, reaching a historic low, according to Sherry FitzGerald. The real estate group’s latest biannual analysis shows there were just 11,050 second-hand properties listed for sale nationally this month, representing a mere 0.6 per cent of the entire private housing stock in Ireland.

This latest analysis reveals a 27 per cent decline in available properties for sale since January last year, and a more pronounced 46 per cent drop compared to January 2020, before the Covid-19 pandemic.

Marian Finnegan, managing director of Sherry FitzGerald, said there was an urgency to the situation facing homebuyers. “This scarcity in housing options exacerbates the ongoing imbalance between housing demand and supply within Ireland, intensifying challenges for individuals and families seeking suitable housing.”

Rural areas, especially counties like Sligo, Roscommon, Mayo, Kerry and Westmeath, are disproportionately affected by supply shortages, experiencing stock decreases exceeding 55 per cent within a four-year span. Notably these counties had fewer than 650 new dwelling completions in 2023.

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While there were about 32,700 new dwelling completions in Ireland last year, they were concentrated primarily in Dublin and the Greater Dublin Area, representing 56 per cent of housing completions.

“The need for an equitable distribution across the country is now crucial,” said Sherry FitzGerald. “Rural and regional Ireland faces significant declines in available housing stock, necessitating the delivery of new stock to rejuvenate their housing markets.”

Another concern highlighted by the company was the shortage of housing in lower price categories, with the sub-€200,000 range experiencing a substantial 35 per cent drop, leaving only 2,500 properties available for purchase nationally. “This shortage disproportionately affects those with single or lower incomes, highlighting the pressing need for affordable housing solutions,” the group said.

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Sherry FitzGerald’s analysis reveals substantial declines in housing stock across all four provinces since 2020, with Ulster experiencing a 53 per cent reduction; Munster seeing a 50 per cent decrease; Connacht encountering a 49 per cent decline; and Leinster a 40 per cent drop over the four-year period.

In Dublin the available stock of second-hand residential properties for sale in January totalled 2,600 units, marking a 30 per cent reduction from 2020 and representing 0.5 per cent of the entire private housing stock.

Stock levels vary across the four local authorities, with Fingal experiencing a 37 per cent decrease, South Dublin observing a 36 per cent reduction, and Dún Laoghaire-Rathdown and Dublin City recording falls of 26 per cent and 23 per cent respectively.

“As the housing market grapples with unprecedented challenges there is a growing need for collaborative efforts to address the unprecedented challenges and ensure sustainable solutions that meet the housing needs of all segments of the population in all locations,” said Ms Finnegan.

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