Is there a Housing Crisis in Ireland​?


The housing sector in Ireland has been faced with challenges over recent years. Compared to the early 2000s, many Irish citizens have taken for granted the abundant, affordable housing favored by government policy and economic security. These assumptions have been costly, and the country has been hit by a worsening housing crisis leading to homelessness.  Research shows that homeownership has fallen as homelessness, demand, and eviction rise, resulting in shortages, as rising prices are fueling everyday political debates, campaigns, and street protests.

Historical data show that Ireland was among the countries with high home and property owners rates in the past. But in recent times, things have shifted as many people have been left homeless due to eviction and selling properties to private rental owners. Below are some causes leading to the housing crisis in Ireland.

  • High housing prices. House prices have risen as a result of housing difficulties, according to studies.
  • High demand but less supply. Demand drives the housing market; this causes the few available houses to be sold out within a short period, causing others to lack houses.
  • Unemployment economic crisis. Unemployment and a lack of funds to provide homes are two fundamental issues. Many people in Ireland are at risk of becoming homeless due to the country’s financial problems. As the unemployment rate rises, more individuals are falling into poverty.
  • COVID-19 pandemic. The 2020 pandemic has taught us a lot while showing how countries can become vulnerable to an economic meltdown. The pandemic caused lockdown and restriction of movement, and this affected many, including the housing sector.
  • High-interest prices and strict rules for mortgages. As the high cost of living surges, the financial institution has brought caps that limit the housing sector, making it hard to build or own a home. The high cost of mortgages and interest rates chases away investors causing the housing problem.

Despite the high housing crisis over the years, the following are some ways the Irish housing sector can control the high rise in eviction and people being homeless. These are: –

  • Streamline civil service and regulation. The Irish government can set policies and rules that help to control the price and provide opportunities for people to build and buy affordable houses.
  • Increase the supply of affordable homes. Ireland can control the housing crisis by building more houses through investors, which will help provide cheap housing programs for every citizen.
  • Reduce building costs. One reason behind the housing shortage is the expensive cost of building houses. To avert this, then there is a need to lower the cost of buying through tax reliefs.
  • Government support. The Irish government can help control the housing crisis by creating a task force that can help oversee the challenges with housing and come up with ways to curb the problem.
  • Introduction of mortgage interest relief. Due to the economic recession caused by the 2020 pandemic, these incentives will help curb homelessness by assisting those who cannot afford to own or buy a home through loans.

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