Construction of residential homes has stalled, casting fresh doubt on Government claims that close to 40,000 would be built this year.

New CSO data shows home building fell by 4.1% between the second and third quarters of the year – regarded as the busiest periods for the construction industry.

Taoiseach Simon Harris said during the election campaign that Housing Minister Darragh O’Brien reassured him close to 40,000 homes would be built by year end.

But housing expert Lorcan Sirr, senior lecturer at the Technological University Dublin, said: “I don’t know where that figure’s coming from.

“They’re basing it all on commencement notices but a commencement notice isn’t a completion, so it’s obvious that they’re basing it on the wrong metric.”

The CSO figures show the overall volume of construction was up by just 0.9% between May, June, July and July, August, September.

Although non-residential building, such as offices, increased, construction of badly needed homes was down by 4.1%.

Ian Lawlor, head of property and construction financiers Roundtower Capital, called for an “exponential increase” in construction.

“While the 4.5% annual increase in the volume of building and construction production is encouraging, the 4.1% fall in the residential building sector in the third quarter of 2024 is disappointing,” he said.

“We would hope the outcome of the general election will have a huge positive impact on output.

“The election is being held at a particularly critical time for project delivery across housing and key infrastructure.

“There needs to be an exponential increase in the number of houses being built so young people have a chance of owning their own home and so that the rate of house price growth is kept in check.

“This can be achieved by reductions in third-party blockages, which will in turn reduce building costs and lead to a substantial increase in new builds.

“Hopefully the energy of a newly elected government will finally result in these much-needed actions.

“It’s been estimated up to €20bn is required to deliver the Government’s new target for housing delivery.

“The State is facing a huge funding challenge in terms of how this estimated €20bn can be delivered.

“It’s likely up to 80% of the €20bn will need to come from the private sector. It will be interesting to see if any of the election promises around infrastructure for housing – including the much-touted Department of Infrastructure – come to anything.

“It’s clear that hundreds of thousands more new homes need to be built to cater for housing demand.

“These new homes will not be able to be built if power and water cannot get to those houses and if other basic infrastructure is not put in place,” Mr Lawlor said.

“Planning delays are nothing new and the practice of allowing minority interests to trump community interests needs to finally stop.

“Without proper planning, joined-up thinking and necessary infrastructure, construction activity will falter – and the hopes of many young people vying to get onto the property ladder will continue to be dashed,” he added.

CSO statistician Shane O’Sullivan said: “On a seasonally adjusted basis the volume of construction production rose by 0.9% between Q2 and Q3 2024.

“On an annual basis, between Q3 2023 and Q3 2024, production volume increased by 4.5%.

“On a seasonally adjusted basis the volume of production was up by 0.9% between Q2 and Q3 2024.

“During the same period, non-residential building increased by 0.9%, while residential building was down by 4.1%. Separately, civil engineering grew by 2.4%.”

Photo: Simon Harris. Photographer: Leah Farrell/© RollingNews.ie