Key Takeaways
| Issue | Impact | Why It Matters |
|---|---|---|
| Skills shortage | Construction workforce down 67,000 compared to Celtic Tiger era | Too few tradespeople to meet housing targets |
| Wage inflation | Wages up 10% in Q2 2025, plus 3.4% new sectoral increase | Labour costs = 30–40% of build costs, driving up house prices |
| Zoning delays | Councils slow to rezone land for housing | Even if workers are available, projects can’t start |
| Housing target | 303,000 homes (2025–2030) | Unrealistic – workforce, zoning, and costs make it impossible |
| Potential solution | Priority construction visas (10k–25k workers) + modular worker housing | Could relieve labour pressure but needs housing supports |
Ireland’s housing crisis has many moving parts; lack of zoned land, labour shortage, poor water infrastructure, rising material costs, etc. But at the heart of it lies a simple, yet stubborn fact – Ireland simply does not have enough workers to build the homes promised by government.
The Irish Times recently reported that wages in construction rose 10% in Q2 2025, with a further 3.4% added by a sectoral employment order. Irish Times
Labour accounts for up to 40% of build costs, so these increases feed directly into house prices. Meanwhile, Ireland’s construction workforce stands at around 170,000 today, far below the 237,000 peak during the Celtic Tiger.
The Government’s housing plan to build 300,000 new homes by 2030 looks less like strategy, and more like campaign rhetoric. In fact, new homes will barely meet 30,000 out of the required 50,500 completions for this year.
With zoning delays, worker shortages, and wage inflation biting, the state simply needs to accept and state the obvious: this target will not be met.
1. Construction Workers Shortage Pushing Wage Inflation.
Workforce Numbers
- Current workforce (2025): ~170,000
- Celtic Tiger peak (2007): 237,000
- Gap: 67,000
Ireland is missing tens of thousands of skilled workers across key trades – bricklayers, electricians, plumbers, and crane operators.
Wage Inflation Table
| Period | Wage Increase | Extra Notes |
|---|---|---|
| Q2 2025 | +10% | Reported by Irish Times |
| Mid-2025 | +3.4% | Under the Sectoral Employment Order (Construction Sector) 2024 the minimum rates of pay increased by 3.4% on 1 August 2025. |
| Total 2025 YTD | ~13.4% | On top of already high labour costs |
With labour representing 30–40% of build costs, these wage hikes are adding 1–1.5% to housing costs in H2 2025 alone. However, I’m not particularly saddened by the fact that construction workers are earning more due to this shortage.
In fact, I’m delighted for them.
2. Zoning & Planning Approval Delays – An Overlooked Problem
Even if Ireland solved the worker shortage tomorrow, many projects still couldn’t start because land isn’t ready to build on.
- Councils have been slow to rezone land, despite government orders.
- Taoiseach Micheál Martin recently threatened to sideline local authorities and use government powers to force rezoning.
Why This Matters
- Housing targets can’t be met if the land pipeline is choked.
- Rezoning delays add approximately 3–5 years to the timeline for major developments.
- Investors and builders won’t commit if land is stuck in legal limbo.
Ireland’s housing debate often focuses on supply, demand, and wages. But zoning and planning delays may be the single biggest drags on delivery.
3. The 303,000 Homes Promise – A Political Mirage
The Government’s promise of 303,000 homes between 2025 and 2030 sounds impressive. But under close scrutiny, it collapses like shortbread.
Why It Won’t Happen
I probably sound like a broken record by now but:
- We are about to enter October of 2025, and figures already show we will be lucky to have 30,000 completed new homes this year out of 50,500.
- Worker Shortage – At least 67,000 extra workers would be needed to hit targets.
- Wage Inflation – Rising labour costs mean fewer homes are built for the same budget.
- Zoning Delays – Even approved projects take years to clear planning and legal hurdles.
Target vs Reality.
| Government Target | Reality Check |
|---|---|
| 303,000 homes (2025–2030) | Requires ~50,500 homes per year |
| Last Year’s Output | ~32,000 in 2024 |
| Shortfall | ~18,000 homes annually |
| Realistic Outcome | Closer to 180,000–200,000 homes over 5 years |
4. Could Priority Visas Help?
With anti-immigrant sentiment growing even stronger among local nationalist groups in the country, this will be a touchy topic for some. However, there is a clear housing crisis and there aren’t enough Irish/EU contractors to reduce its impact.
A possible short-term solution is a priority visa scheme for foreign construction workers and skilled trades.
Visa Options.
| Scenario | Extra Workers | Impact on Workforce |
|---|---|---|
| 10,000 visas | +6% needed workforce | Keeps key projects on track |
| 15,000 visas | +9% needed workforce | Slows wage inflation |
| 25,000 visas | +15% needed workforce | Major capacity boost |
On paper, a large-scale or even conservative visa programme (say 10,000 – 25,000 workers) could ease labour shortages, making it easier to hit housing targets. Ireland has relied on migrant workers in construction before (e.g. Eastern Europe during the 2000s), and many other countries (like Canada and Australia) run targeted visa schemes for skilled trades.
But Here’s the Housing Paradox/Catch
- WHERE WOULD THE NEW BUILDERS LIVE?
If you parachute in tens of thousands of workers, they need housing themselves. Unfortunately, the rental market is already squeezed to the bone in Ireland, and new workers are less likely to buy homes once they arrive.
Simply run a search on Daft for your county, and you’ll notice that as few as 20% of listings are rentals/shared spaces, compared to 80% homes for sale. It’s a massive difference.
2. VULNERABLE TO EXPLOITATION.
New migrant construction workers could end up paying insanely high rents, due to their perceived wage inflation.
3. SHORT-TERM STRAIN ON RENTALS
In the short run, this could worsen the rental crisis before their labour even begins to increase housing supply. The lag between hiring workers and delivering completed homes is at least 12–24 months.
Possible Middle-ground Approaches Government could Consider.
- Tie visas to accommodation – Require that contractors applying for worker permits provide housing for their workers – like modular worker accommodation, temporary villages, etc. Or they can co-finance rental housing for their workers.
Such a requirement could bring back more houses onto the rental market.
2. Phase-in visas – Instead of say 25,000 at once, stagger arrivals over several years, matching them with actual projects and regional housing availability.
3. Regional Dispersal – Government could incentivise construction work (and housing for workers) outside Dublin, Cork & Galway where housing pressures are the highest.
4. Mix local training + visas – Use visas as a temporary measure, but pair this policy with aggressive investment in Irish apprenticeships and upskilling Irish workers. That way, the long-term dependency on nation-building is on Irish talent.
5. Modular and Alternative Housing – A Faster Path
Ireland cannot meet housing demand with traditional construction alone. Labour and zoning bottlenecks require faster, alternative solutions that do not sacrifice quality:
- Modular homes – Faster build times, less labour-intensive, scalable.
- Tiny Homes, Container Homes on Private Land – Clear legal frameworks for tiny homes on private land need to be considered, and passed into law. See more on the Farrell’s HERE.
- Worker housing villages – Temporary modular units for foreign builders.
- Public-private partnerships – the State could discuss policies with and align with the 50+ private modular suppliers across the country to accelerate delivery.
6. The Cost of Further Delay
Every year Ireland misses housing targets, the crisis compounds:
- Rents climb as supply falls further behind.
- Young Irish Talent continues to emigrate as they see no hope for a future here
- Homelessness rises (already over 16,353 people in emergency accommodation as of August 2025).
- Young Irish professionals continue to postpone the idea of starting families as they can’t own a home. Shame also deepens for many who have to live with housemates or their parents. The effects on future generations could be devastating.
- Domestic violence survivors suffer without refuge spaces or long-term housing.
- Economic competitiveness falls as workers can’t afford to live near their jobs.
This is not abstract.
All the above issues are the daily realities for families bidding against each other on scarce homes, and with little to no hope in the future.
