A lack of available land continues to hinder house building, says a new report that adds to recent calls on local councils to boost zoning for new homes.
Most builders expect to increase residential construction this year, or to match 2025 levels, according to Goodbody Stockbrokers’ 2026 Irish Homebuilder Survey. However, the report warns that the industry now highlights lack of available land as the “number one factor” holding up new house construction, a turnaround from last year.
A year ago, builders warned that planning was the biggest cause of delays to new housing, with available sites at number two.
Those positions have since swapped, with lack of land now topping the league of says Goodbody’s report, written by the firm’s chief economist, Dermot O’Leary.
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“The results confirm the urgency of efforts to increase the amount of zoned and serviced land that is currently going through the local authorities under the Section 28 legislation,” he says.
Minister for Housing, Local Government and Heritage, James Browne, last year mandated councils under Section 28 of the Planning Act, 2000 to review development plans and increase the amount of available land zoned for housing.
Councils are going through their own procedures, but “at different speeds across the country”, O’Leary observed on Tuesday. “Sometimes there are different processes and different levels of opposition to these kinds of things, depending on the local authority,” he added.
Browne has indicated that the law gives him powers to compel councils to make more housing land available should the current procedure not provide it quickly enough, O’Leary pointed out.
His report follows similar calls for councils to speed up the zoning of land for new houses and apartments.
Estate agents Knight Frank last week said the issue would leave new house supplies lagging demand, despite the number of homes completed in 2025 beating most forecasts.
“It has been reported that just two local authorities have updated their development plans, which is very concerning,” said the firm’s divisional director, Robert O’Connor.
Goodbody’s report shows that the builders which participated in the firm’s survey believe they will mostly better the number of homes they built in 2025 this year. Those that took part completed around 10,000 new houses and apartments last year, O’Leary confirmed.
Most of those expecting to boost supply this year believe the increase will be more than 20 per cent, says his report.
Of those surveyed, 72 per cent expect an increase relative to 2025, it says.
“Expectations for growth in supply in 2027 are even more positive, with all respondents expecting either an increase (86 per cent) or to remain the same (14 per cent) relative to 2026 levels,” Goodbody states.
The expected increases in 2027 range from 10 per cent to more than 30 per cent, it adds.
