The Irish housing crisis continues to escalate, driven by soaring construction costs, a shortage of affordable homes, and an overwhelming demand for rapid housing solutions. With traditional building materials like cement and concrete experiencing sharp price increases, I believe it’s time to rethink the approach to homebuilding in Ireland.
With my continuous research into the state of housing in Ireland, I have come to understand that timber frame modular homes provide a compelling housing alternative, and offer cost-efficiency, faster construction times, and environmental benefits.
This blog post briefly explores why timber frame modular homes are vital for helping to resolve Ireland’s housing shortage, examines the advantages and disadvantages of this building method, and considers the potential role of both government and private sector initiatives.
The Housing Crisis in Ireland – Why Change Is Needed.
Ireland’s housing shortage has reached a critical point. With just over 30,000 homes completed in 2024, the numbers still fall short of the 50,000 units per year required to meet demand by 2023. This shortage has resulted in skyrocketing property prices and increased homelessness, emphasising the urgent need for innovative solutions.
While extremely reliable, traditional construction methods reliant on materials like cement and concrete are proving costly and time-consuming. According to MyBuildingSupplies.ie, a reliable Building Materials Price Tracker, cement prices rose steadily between 2023 and 2025, with no signs of decline. This trend is driven by rising energy costs and supply chain disruptions, further contributing to the housing crisis.
Conversely, timber prices have remained relatively stable, making timber frame modular homes an attractive, cheaper alternative. In a market where affordability and speed are crucial, embracing modular timber construction could be the game-changer Ireland desperately needs.
Why Timber Frame Modular Homes?
First, I will explain what timber frame modular homes are.
Timber frame modular homes are prefabricated houses built off-site in a controlled environment before being transported and assembled on the final location. These homes are built using timber frames as the main structural support, a method that provides several key advantages over traditional concrete or brick builds.
1. Cost Efficiency and Material Stability
One of the main benefits of timber frame modular homes today is affordability compared to concrete and cement.
The prices of timber, steel and sheet materials have gone down over the past two years compared to the soaring costs of cement and plasterboard.
- Cement Prices – Increased steadily due to energy costs and supply chain disruptions, going from €7.735 per 25kg in 2023 to €8.8575 per 25kg in early 2025.
- Steel Prices – Fell from €88.99 per sheet in 2023 to €76.76 per sheet at the start of 2025.
- Timber Prices – Fell significantly from €631.93 per m³ in 2023 to €564.25 per m³ in early 2025 – making it a more affordable choice.
The affordability of timber prices makes it an ideal material for modular construction, offering lower costs and reducing financial risk for developers and homebuyers.
2. Faster Construction Times
Modular homes can be completed in as little as 6 to 12 weeks, compared to the 9 to 12 months required for traditional builds. This speed is due to:
- Factory Construction – Modular units are built in controlled environments, minimising delays caused by adverse weather.
- Simultaneous Site Preparation – Site work (e.g., laying foundations) can occur while the home is being built off-site, speeding up the overall timeline.
- Efficient Assembly – Once delivered, the modular units can be assembled quickly, reducing on-site labour costs.
3. Environmental Sustainability
Timber is a renewable resource with a lower carbon footprint than concrete or steel. Ireland’s commitment to sustainability aligns with the environmental benefits of using timber:
- Reduced Carbon Emissions – Timber naturally absorbs carbon dioxide, lowering the overall carbon footprint of the build.
- Sustainable Sourcing – Sourcing timber locally eliminates the need for long-distance transportation, significantly reducing the carbon footprint associated with shipping building materials from overseas.
- Boost Local Economy – Local timber sourcing supports local forestry industries, creating jobs and encouraging sustainable forest management in Ireland.
4. Design Flexibility and Customisation
Contrary to my issue of standard modular homes being ‘boxy’ and uniform in design, modern timber frame modular homes offer a wide range of customisation options.
From open-plan layouts to energy-efficient features, homeowners can easily personalise their living spaces to suit their tastes and needs due to the pliability of wood.
Challenges and Disadvantages of Timber Frame Houses
While timber frame modular homes offer many benefits, they also come with potential drawbacks that should be carefully considered.
1. Weather Resilience and Durability
Ireland is known for its wet and windy climate, which may pose challenges for timber frame constructions.
- Strong Winds – Ireland frequently experiences high winds, especially along the Atlantic coast. Timber Frame Modular homes need to be securely built and designed to withstand gusts of over 180 km/h.
- Moisture Concerns – Prolonged exposure to Irish moisture can lead to timber decay if not properly treated. However, modern timber frames are engineered with moisture-resistant treatments and require proper ventilation and maintenance.
- Fire Safety – Timber is more combustible than concrete or brick. So advanced fire-retardant treatments and adherence to strict building regulations are essential for safety from electrical fires.
2. Perception and Cultural Acceptance
In Ireland, concrete and brick homes are traditionally associated with durability and prestige.
Modular construction is fairly new in ireland and pretty untested, so there is a cultural perception that they are less sturdy or less valuable. This stigma could slow adoption rates, despite the proven resilience and efficiency of timber frame modular homes.
3. Financing and Insurance Challenges
Some financial institutions are cautious about lending for modular homes due to perceived depreciation risks.
Additionally, insurance companies may charge higher premiums, viewing timber homes as fire hazards and modular homes as less durable than standard brick and mortar builds. However, increasing demand and evolving industry standards may gradually change this narrative.
Government and Private Sector Initiatives
To fully realise the potential of timber frame modular homes in alleviating the housing crisis, strategic initiatives from both the government and private sectors are essential.
1. Planning Permission Exemptions
Recent developments in Irish legislation may pave the way for faster adoption of modular homes.
In February 2025, the Irish government said it will consider expanding planning exemptions for detached modular structures, allowing for up to 40 sq/m modular units without planning permission.
- These exemptions aim to facilitate intergenerational living, enabling younger adults to live independently while staying close to family.
- The Planning and Development Act 2024 supports these measures, streamlining the approval process for modular home construction.
2. Financial Incentives and Grants
PS. These are simply suggestions and not incentives the government already has in place.
To overcome financing challenges, the government could introduce:
- Low-Interest Loans – Targeted at first-time buyers and low-income families to encourage modular home purchases.
- Tax Incentives for Developers – Providing tax relief for developers who build affordable modular homes, increasing supply and reducing costs.
- Grants for Sustainable Construction – Incentivising the use of eco-friendly materials and energy-efficient designs in modular homes.
3. Collaboration with Private Sector and Banks
The private sector, including banks and insurance companies, needs to adapt to the growing modular market by:
- Creating Custom Mortgage Products – Designed specifically for modular homes to address depreciation concerns.
- Standardising Insurance Policies – Based on the proven durability and safety standards of past and current homes made with wooden materials.
- Partnerships with Modular Home Manufacturers – To develop innovative financing options and reduce costs. For example, the partnership between Buildwright and Permanent TSB to provide mortgages to build concrete modular homes.
Conclusion
In my humble opinion, I believe Timber frame modular homes offer a cost-effective, environmentally sustainable, and rapidly deployable housing solution. In the face of rising construction costs, a persistent housing shortage, and changing societal needs, modular homes seem like a viable alternative to traditional brick-and-mortar builds.
With strategic government policies, financial incentives, and cultural acceptance, timber frame modular homes can significantly contribute to resolving Ireland’s housing crisis.
So as the country continues to innovate and adapt, this construction method presents a crucial opportunity to provide affordable, durable, and sustainable housing solutions for generations to come.
Let me know what you think in the comments. Thanks for reading.
