Irish house building falls for second month running

Ireland’s housing targets face another setback

Figures from AIB show its housing index dropped to 47.2, signalling a further decline in building activity.

This came despite modest growth across the wider construction industry, where the bank’s overall purchasing managers’ index (PMI) reached 50.4.

The continued slowdown in house building comes as the Government works towards its target of delivering 300,000 homes across the State by 2030. 

Billions of euro have also been pledged for infrastructure projects, yet housing remains a major concern, with a recent poll finding that seven in ten young adults are considering moving abroad in search of a better quality of life.

Rising fuel prices add to pressure on Irish builders

According to The Irish Times, other areas of the construction industry have performed more strongly. 

Commercial building, which includes factories, shopping centres and business premises, expanded for the third month in a row, with its index rising to 52.4. 

Civil engineering also returned to growth, reaching 52.3 as activity increased across infrastructure projects.

However, rising costs continue to put pressure on builders, particularly as fuel prices climb amid the US-Iran war. 

AIB senior economist John Fahey said high prices “remained a key challenge” for the industry in September.

With commercial construction and civil engineering picking up, the latest figures highlight the difficulties facing the residential sector.