The urban market: ‘Housebuilding needs to triple here just to meet demand for homes’
Alack of supply is having a dramatic effect on house prices in Limerick, where agents believe the delivery of new homes must be tripled. Lisa Kearney, Rooney Auctioneers head of residential and new home sales, said Limerick needed at least 2,000 new homes a year.
“In 2022, only 722 new homes were built in Limerick, a figure that increased slightly to 794 in 2023. However, the first quarter of 2024 saw a slight decrease in new builds compared to the previous year, highlighting the ongoing shortfall,” she said.
“Limerick requires between 2,000 and 4,000 new homes annually to meet the current demand, yet the supply remains insufficient.”
Prices in Limerick were 12.5pc higher in the first half of this year compared to the same time last year, according to the IPAV. Apartment prices grew by 15.6pc in this period. Four-bed semi-detached homes also saw big growth, up 12.6pc. Prices for three-bed semi-detached houses grew by 9.3pc on average.
Ms Kearney said significant investment in the region from multinationals, including Verizon, Nordic Capital and Eli Lilly had intensified demand for rentals and people looking to buy.
“There is an urgent need for policy reform and action to address Ireland’s ongoing housing crisis, with a specific focus on the challenges faced in Limerick,” she said.
“The scarcity of housing is exacerbating challenges for both buyers and sellers. Many potential sellers are hesitant to put their properties on the market due to the difficulty in securing a new home.
“The lack of new homes has led to 67pc of first-time buyers purchasing second-hand properties in 2023.
“While schemes like Help-to-Buy and the First Home Scheme have been successful, they do not extend to second-hand home purchases, a gap that urgently needs to be addressed.”