What is the Housing Crisis mentioned on the Facebook group and why hasn’t it been resolved?
Massive sudden growth in Ireland over the last decade, post-2008 resession has lead to a situation where demand for homes vastly outweighs supply of homes.
Building an estate of 50 homes requires more than bricks and mortar, it requires road upgrades, sewage plant upgrades, water supply upgrades, internet and phone lines, schools, medical etc etc etc.
****UPDATED 6/3/24 on the Daft report
Most of Ireland is rural, small towns and villages remote from the larger cities where work is.
The population of Ireland is also small, around 5.1 million people, so increases of just 100 000 people will make a huge difference to the infrustrature demands. We as South Africans moving to Ireland are part of this immigration wave.
There is a homelessness crisis too, and because of weather conditions these people cannot be left to be on the street, they require homing even if that is temporary.
Basic micro-econmics dictates: “The law of supply and demand is an economic theory that explains how supply and demand are related to each other and how that relationship affects the price of goods and services. It’s a fundamental economic principle that when supply exceeds demand for a good or service, prices fall. When demand exceeds supply, prices tend to rise.”
Right now in Ireland the supply of houses is low and cannot meet demand, so the market for homes is such that what is available is way more expensive than it was just 5 or 10 years ago. There are arguments that the government has not handled this correctly, and I am in no position to comment on that. What has come into place over the last few years is a Rent Pressure Zone policy. This means in high demand areas, a property cannot have it’s rent increased over certain amounts.
DAFT REPORT 2024 rental Q1: HERE
