The Central Bank of Ireland has issued a stark warning that the country faces formidable structural challenges in scaling up homebuilding to meet projected long-term demand. According to its latest report, Ireland must build an average of 52,000 homes per year until 2050 to accommodate population growth and household formation, well above the 33,000 units completed last year—a 15-year high.
The central bank’s analysis highlights several bottlenecks that continue to limit supply, including a slow and unpredictable planning system, high input costs, labour shortages, and a lack of access to development finance. It warns that unless these issues are addressed, rising housing costs could impact economic competitiveness and deter foreign direct investment.
The report also calls for a coordinated national strategy that includes targeted reforms to planning and procurement processes, better alignment between infrastructure and housing delivery, and support for modern construction methods such as modular building.
For private equity investors, this environment presents both risks and opportunities. While development remains capital-intensive and fraught with regulatory complexity, the persistent supply-demand imbalance continues to offer attractive long-term yields, particularly in build-to-rent, affordable housing, and urban regeneration projects.