“Housing stock levels fall to a new historic low, further damaging transaction activity.”
Statement by Marian Finnegan, Managing Director, Sherry FitzGerald.
January 29th, 2024
Sherry FitzGerald Research's latest bi-annual analysis indicates a severe shortage in available housing stock, reaching a new historic low. In January 2024, only 11,050 second-hand properties were listed for sale nationwide, representing a mere 0.6% of the entire private housing stock in Ireland.
This latest analysis reveals a significant 27% decline in available properties for sale since January 2023 and a more pronounced 46% drop compared to January 2020, before the COVID-19 pandemic.
Marian Finnegan, Managing Director of Sherry FitzGerald, emphasises the urgency of the situation, stating, "This scarcity in housing options exacerbates the ongoing imbalance between housing demand and supply within Ireland, intensifying challenges for individuals and families seeking suitable housing."
Rural areas, especially counties like Sligo, Roscommon, Mayo, Kerry, and Westmeath, are disproportionately affected by supply shortages, experiencing stock decreases exceeding 55% within a four-year span. Notably, these counties had fewer than 650 new dwelling completions in 2023.
While there were approximately 32,700 new dwelling completions in Ireland in 2023, they were concentrated primarily in Dublin and the Greater Dublin Area (GDA), representing 56% of housing completions. The need for an equitable distribution across the country is now crucial. Rural and regional Ireland faces significant declines in available housing stock, necessitating the delivery of new stock to rejuvenate their housing markets.
Another concern is the shortage of housing in lower price categories, with the sub-€200,000 range experiencing a substantial 35% drop, leaving only 2,500 properties available for purchase nationwide. This shortage disproportionately affects those with single or lower incomes, highlighting the pressing need for affordable housing solutions.
Sherry FitzGerald Research's analysis reveals substantial declines in housing stock across all four provinces since 2020, with Ulster experiencing a 53% reduction, Munster seeing a 50% decrease, Connacht encountering a 49% decline, and Leinster witnessing a 40% drop over the four-year period.
In Dublin, the available stock of second-hand residential properties for sale in January 2024 totalled 2,600 units, marking a 30% reduction from 2020 and representing 0.5% of the entire private housing stock. Stock levels vary across the four local authorities, with Fingal experiencing a 37% decrease, South Dublin observing a 36% reduction, and Dun Laoghaire-Rathdown and Dublin City recording falls of 26% and 23%, respectively.
In conclusion, Ms. Finnegan emphasised, “As the housing market grapples with unprecedented challenges there is a growing need for collaborative efforts to address the unprecedented challenges and ensure sustainable solutions that meet the housing needs of all segments of the population in all locations.”
ENDS
For any further information, please contact:
Jill O’Neill Marian Finnegan
Director of Marketing & PR Managing Director
Sherry FitzGerald Group Sherry FitzGerald
Ph: 01 2376 6324 / 086 252 3277 Ph: 01 237 6341 / 086 814 8251
