Thursday 25 May 2017

Why placing priority on building smaller homes is misguided

Focus must be on larger family homes. Photo: Rui Vieira/PA
Focus must be on larger family homes. Photo: Rui Vieira/PA

John McCartney

Political stability will require the incoming government to seek cross-party understanding on key issues, including housing. This creates the opportunity for a coordinated approach to policy, but there are also risks, as attempting to please everyone could result in a mishmash. Moreover, hasty decisions could make things worse.

Ireland's housing supply is fixed in the short term. We have too few developers, and finance is scarce. This won't change overnight, so housing output will continue to undershoot in the medium term.

In these circumstances, subsidising buyers or renters can only cause inflation - giving people more money to compete for the same number of properties inevitably drives up prices.

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