It costs more to provide a new home in Ireland than the market is willing to pay for it. This is the structural crux of Ireland’s housing problem. (Thread) https://www.irishtimes.com/business/economy/five-graphs-that-tell-the-story-of-the-irish-rental-crisis-1.4081552?mode=amp

There are three drivers for this. Construction cost (including vat, charges and levies); land cost; and finance cost. In each of these areas the government could intervene to improve the situation, but hasn’t. 2/6

Finance cost can be addressed by providing a guaranteed purchaser for new homes, as a downside protection against a downturn. 3/6

Construction cost can be addressed In short term through grants. The government might pay a targeted incentive to housing delivered by a set date. This would also make supply more predictable. Grant money will flow back through tax and levies. 4/6

Land costs can be addressed by strategically releasing state and local authority land for rapid development. 5/6

We are currently getting around 25,000 new homes per year but that simply isn’t enough to address the backlog of demand. We need to take action. /6 ends.