Central Bank Identifies Planning Rules as Key Barrier to Housing Supply

Gabriel Makhlouf, Governor of the Irish Central Bank, has highlighted that the primary obstacle to increasing housing supply in Ireland is the implementation of new planning regulations, rather than the availability of financing for homebuilders. In 2024, the number of homes constructed in Ireland declined by 7% to over 30,000 units. The central bank forecasts that the government’s target of reaching 50,000 homes annually within the next three years is unlikely to be achieved. Despite suggestions from the housing minister to enable developers to borrow more, Makhlouf argues that streamlining planning processes is more critical. The Irish government is considering measures such as tax incentives for developers to stimulate apartment construction amid a housing crisis exacerbated by rapid population growth and challenges following the 2009 financial crash.