Residential construction volume slid by 5.4 per cent in the second three months of the year compared to the same period last year, Central Statistics Office (CSO) figures published on Tuesday show.
It follows a 10.6 per cent annual decline previously reported by the statistics agency for the first quarter.
Still, production in the sector edged 1.8 per cent higher in the second quarter compared to the previous three months.
The Government, formed in January with a strong mandate to tackle the State’s housing crisis, is widely expected to fall well short of its target of 41,000 homes to be completed this year as it eyes 300,000 new homes by 2030.
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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.
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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.
