THE vast majority of housing units that are being built in Dublin are now apartments.
Their construction is being largely financed by cuckoo funds or they are being built as social housing.
This means that only a very small number of these units will be made available for households to purchase, according to an analysis of Department of Housing statistics by Goodbody Stockbrokers.
And despite 2,327 housing units commencing in February, there is a risk that the boom in new housing supply seen after the reopening of the construction sector in April last year is fizzling out.
Goodbody economist Dermot O’Leary blamed planning blockages through the courts for overall construction levels falling back.
This is posing a threat to the delivery of the hoped-for 30,000 units a year being maintained, he said.
More than half of the planning permissions being granted by An Bord Pleanála have been stopped by judicial reviews in the courts, often because the permissions were granted despite the granting of the permissions conflicting with the county development plans in the area.
Mr O’Leary worked out that some seven out of 10 housing unit commencements in Dublin are now apartments.
He said: “It is Government policy to promote higher density, but these units are only viable for either the private rented sector (PRS) or for the provision of social housing.
“A very small number of these units will be made available for household purchase.”
Across the country as a whole a third of all commencements are now apartments.
He said the Department of Housing figures show the growing importance of apartments in housing output in Ireland, and specifically in Dublin.
And he said the overall level of home construction may not reach hoped-for levels.
“The boom in new housing supply in Ireland seen after the reopening of the construction sector in April 2021 is fizzling out, with planning blockages through the courts posing a threat to the delivery of 30,000 units per annum being maintained.”
Department of Housing figures show that 2,327 housing units were started in February.
This took the 12-month total to a new high in this cycle of 33,000 units.
This compares to a high of 27,000 coming into the pandemic, pointing to an impressive rebound in new housing supply in Ireland, Mr O’Leary said.
But the more recent trends have been weaker.
In the three months to February, new housing commencements were 4pc lower than the same period two years earlier.
“The weakness is led by Dublin, where commencements were down by 40pc on a two-year comparison,” he said.