According to property experts in Ireland, demand for new homes in Ireland is up a staggering 114% year on year. This is in comparison to May 2022. Overall demand in Dublin is double the national rate at 34%. Eighteen of the 26 Republic counties have seen an increase in demand. The demand for new housing in Meath is up 29%, Limerick and Offaly both saw a demand increase of 26%, while housing demand in Louth is 25% higher than a year ago.
There are a number of factors that are driving the increase in demand for new homes in Ireland. One factor is the rising population. The Irish population is growing at a rate of around 2% per year, which is putting pressure on the housing market. Another factor is the low availability of housing stock. The number of new homes being built in Ireland is not keeping pace with demand, which is pushing up prices.
The increase in demand for new homes is having a number of consequences. One consequence is that it is making it more difficult for people to buy a home. The average price of a new home in Ireland is now over €300,000, which is out of reach for many people. Another consequence is that it is driving up rents. The average rent in Ireland has increased by over 10% in the past year.
The government is aware of the problem and is taking steps to address it. The government has introduced a number of measures to increase the supply of housing, such as the Help to Buy scheme, which provides financial assistance to first-time buyers. The government is also planning to build more social housing.
It is too early to say whether these measures will be enough to address the problem of the shortage of housing in Ireland. However, the government is committed to finding a solution and is working on a number of other initiatives to increase the supply of housing.
In addition to the factors mentioned above, there are a number of other factors that could be contributing to the increase in demand for new homes in Ireland. These include:
- The strong economy: The Irish economy is growing strongly, which is leading to an increase in employment and disposable income. This is making people more confident about buying a home.
- The low interest rates: Interest rates in Ireland are at a record low, which is making it more affordable for people to borrow money to buy a home.
- The government’s Help to Buy scheme: The government’s Help to Buy scheme provides financial assistance to first-time buyers, which is making it easier for them to afford a home.
The increase in demand for new homes is likely to continue in the coming years. This is due to a number of factors, including the rising population, the low availability of housing stock, and the strong economy. The government is taking steps to address the problem, but it is too early to say whether these measures will be enough to meet demand.