Housing starts surged in August, with 3,880 new homes breaking ground, a 231% jump from the same month last year, according to the Department of Housing. This remarkable increase follows a period of relatively low activity, with only 1,172 new homes started in August 2025, highlighting the significance of this year’s boom.
This brings the total number of new homes under construction since the start of the year to 22,854, a 162% increase compared to the first eight months of 2025. The substantial growth in housing starts is a positive indicator for the sector, reflecting the government’s efforts to address the housing shortage.
Planning approvals hit five-year high
The surge in housing starts coincides with a 60% increase in planning approvals, reaching their highest level in nearly five years. 11,912 homes received planning permission between April and June, up from 7,447 a year earlier. This uptick in approvals is a critical step in ensuring a steady pipeline of new homes, as acknowledged by Minister of State for Planning, John Cummins, who emphasized the importance of these figures in building a sustainable housing supply.
Housing Minister James Browne welcomed the figures, highlighting a 28% increase in planning permissions for the first half of 2026 compared to the same period in 2025. He particularly noted the rise in apartment approvals, attributing it to government incentives for urban apartment construction. Minister Browne’s focus on apartment-building is part of a broader strategy to increase housing density in urban areas, where demand is highest.
A recent Central Bank report revealed that construction time has doubled in the past decade, with homes now taking four years to complete compared to two years in 2017. This delay shows the need for not only increased approvals but also more efficient construction processes to meet housing demands.
Challenges remain despite progress
While the surge in housing starts is encouraging, housing campaigner David Hall cautioned that the 60% increase in planning approvals comes from a low base. He emphasized the need for sustained progress, highlighting the gap between planning permission and actual construction. Hall raised a critical point about the timeline from approval to construction, questioning how many projects actually begin building within 12 months of receiving planning permission.
Of the 8,202 planning applications granted between April and June, only 1,597 were for new homes, with 2,681 for other new constructions, 2,148 for extensions, and 1,776 for alterations and conversions. This distribution highlights the diverse nature of planning approvals and the relatively smaller proportion dedicated to new home construction, which is a key area of focus for addressing the housing shortage.
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