The Future of Ireland’s Housing Crisis: Trends and Solutions
The.Argument for More Apartments
Ireland’s housing crisis is a multifaceted issue, with experts and policymakers offering various solutions. One of the most compelling arguments comes from Michael Stanley, the boss of Cairn Homes. His "back-of-the-envelope" calculation reveals that Ireland has enough bedrooms to solve the housing crisis "three times over." Assuming there are 2.1 million housing units, primarily three and four-bed homes, this translates to roughly 6.7 million bedrooms for a population of 5.3 million. This figure is further enhanced by the fact that approximately one million of us are couples sharing a bedroom.
Yet, despite these numbers, the housing crisis persists. Stanley’s argument is clear: "What does that tell us about our housing stock? It’s underutilised."
The High Demand for Smaller Housing Units
The demand for smaller housing units is evident. Take, for instance, the recent redevelopment of Google’s Bolands Mills quarter in Dublin 4. A staggering 2,300 people applied for just 46 apartments. The units, leased by housing agency Clúid, offer discounted rents that are significantly below market averages. This highlights the dire need for smaller, more affordable housing options.
The Urban Sprawl of Ireland
Ireland’s historical aversion to apartments is a significant factor in the current housing crisis. Unlike cities such as Amsterdam, Berlin, and Vienna, which have embraced high-density housing, Ireland has largely built out instead of up. This has led to extensive urban sprawl, with aggravating implications for transport and other infrastructure.
According to Eurostat, Ireland had the highest rate of people living in houses (89.7%) versus those living in apartments (10.2%) in the EU in 2022. The EU average was 51.9% versus 47.5%. Dublin City Council, however, maintains that about 35% of the units in its area were apartments, comparable with Amsterdam and Copenhagen. The discrepancy reflects a historical aversion to apartments, rooted in part in Ireland’s conservative Catholic heritage.
Economic and Planning Challenges
Dublin, in particular, stands out as one of the most expensive cities in Europe to build apartments. According to a recent report by the Society of Chartered Surveyors Ireland (SCSI), Dublin is the second most expensive city in Europe to build apartments, eclipsed only by Zurich in Switzerland. The cost of delivering a two-bed apartment in Dublin ranges from €359,000 for a low-rise unit in the suburbs to €619,000 for a high-rise unit in the city centre. These high costs, coupled with a cumbersome planning system, make it difficult to build more affordable housing options.
A trip planning application for apartments is three times more likely to fail than for houses. Stanley suggests that homeowners, possibly NIMBYs (Not In My Back Yard), often object to new apartment developments. These planning challenges further exacerbate the housing issue.
| Metric | Ireland | EU Average |
|---|---|---|
| Houses (as of 2022) | 89.7% | 51.9% |
| Apartments (as of 2022) | 10.2% | 47.5% |
| Cost of 2-bed apartment ( sub | €359,000 – €619,000 | €359,000 – €619,000 |
| High-Cost cities | 2nd (Dublin) | 1st (Zurich) |
Potential Solutions and the Way Forward
While smaller units and an increased demand for apartments are part of the solution, the problem is not black and white. Costs continue to rise and other challenges need to be addressed. What can and what can’t be done?
The) Steep Costs of Construction
The cost of constructing apartments in Dublin has risen sharply in recent years. According to the SCSI, the high construction costs and potential for ongoing increases might deter some investors, thus dampening the growth of this market. Although costly, these highs costs are counterproductive to solving the housing crisis. If the country can address some conflicts, either by expanding the demand for smaller units or relying on sustainable sources, quickly, it’s crucial.
Minimal Wind Assessments for CHIME
Environmental assessments for renewable energy projects, in Ireland, could be more efficient , allowing for faster development. But it is unwise to believe Ecology exists in the same way it did 50 years ago and that pace of assessments needs to be outweighed by the need for necessary renewable energies.
FAQ Section
How many bedrooms does Ireland have compared to its population?
There are approximately 6.7 million bedrooms available for a population of 5.3 million, according to Michael Stanley.
Why are apartment developments so costly in Dublin?
Dublin is the second most expensive city in Europe to build apartments, leading to high construction costs and motivating investors with high-volume revenues to engage.
Would building more apartments solve Ireland’s housing crisis?
Building more apartments is a significant part of the solution, but it is not the sole answer. Various factors, including high construction costs and planning challenges, need to be addressed for comprehensive solutions.
How does Ireland’s housing situation compare to other EU countries?
Eurostat data show that Ireland has a higher rate of people living in houses (89.7%) compared to those living in apartments (10.2%.) This contrasts with the EU average of 51.9% for houses and 47.5% for apartments.
