Residential construction levels fell by 5.4% in the second quarter of the year compared to the same period of last year.
That’s according to the latest figures from the Central Statistics Office (CSO), which found that house building continued to decline.
The latest fall follows a 10.6% annual decline previously reported in Q1 2025.
Despite this, production in the sector was up 1.8% in the second quarter compared to the previous three months.
The Government is widely expected to fall well short of its target of 41,000 homes to be completed this year which will add further pressure on its target for 300,000 more homes across the country by 2030.
The Central Bank of Ireland said in early July that it was “surprised” by the lack of progress and that it now estimates that only 32,500 units will be delivered in 2025. Some 30,330 homes were built in 2024.
However, the CSO reported in late July that new homes built in the Republic increased 35 per cent on the year in the second quarter to 9,214, a surprise to industry observers. Apartment completions more than doubled year-on-year in the second quarter of 2025 to just over 3,000.
According to a report in The Irish Times, Davy analysts said at the time that the data supported their above-consensus outlook for residential property output of 37,500 this year.
The CSO has consistently urged caution in comparing its residential building and construction volume statistics with its new dwelling completions data, due to timing and other issues. For example, while the work completed by a construction company on a residential building could take place over several months, the new dwelling completions will only count the building as completed when it has been connected to the ESB electricity network.
Meanwhile, the overall level of construction activity in the State rose by 6.2 per cent on the year in the second quarter, according to the latest CSO release. This was driven by a 12.5 per cent boost in the civil engineering sector.
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