New ESRI warning exposes Government failure to build

29 September 2026

New ESRI warning exposes Government failure to build - The Labour Party

  • ESRI forecasts just 39,200 new homes this year and fewer than 40,500 in 2027.
  • Labour calls for State-led construction company

Labour housing spokesperson Conor Sheehan TD has called on the Government to restore clear annual housing targets and invest directly in building affordable homes following today’s ESRI report. The ESRI forecasts 39,200 new homes in 2026 and just under 40,500 in 2027, while warning that planning permissions have not risen enough to support a sustained increase in construction. 

Deputy Sheehan said:
“Housing for All failed to deliver the homes people need, and Government’s latest plan has dropped annual targets altogether. Fianna Fáil and Fine Gael have utterly failed to deliver housing. After a decade of relying on the market to solve this crisis, the Government cannot keep hoping developers will deliver homes at the scale Ireland needs.

“The ESRI’s warning is another damning indictment of that approach. The Central Bank expects only 39,500 completions this year and 41,000 next year. Even those figures fall far short of the more than 50,000 homes a year we need. Meanwhile, the ESRI warns that planning permissions have not increased enough to sustain higher output. 

“Labour has consistently called for the Land Development Agency to be transformed into a State Construction Company,  capable of building tens of thousands of affordable homes. Government must restore annual targets, back them with direct State investment and start building at the scale this crisis demands.”

 

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