New-Build Homes for Private Buyers Halve to 33% in a Decade
The proportion of new-build homes sold to private buyers has halved in a decade, now at 33%. This decline, despite increased completions, is impacting homeownership rates, which fell from 70% in 2011 to 66% in 2022. Experts warn of significant societal impacts and increased reliance on the rental sector.
The share of new-build homes sold to private buyers has fallen sharply over the past decade, with only one-third of new supply now available on the open market. Annual home completions in the country have increased from 20,000 to over 36,000 in the last six years, but the private market has seen only a small uplift in supply relative to overall growth, according to Sherry FitzGerald research.
Between 2020 and 2025, an average of 33% of new homes were bought by private households, down from 57% in the previous six-year period. In 2023, the open market share hit a 15-year low, with only 29% of 32,473 new builds sold to households. Non-household entities, including investment funds and State-backed housing charities, now account for nearly half of all sales.
Dr. Lorcan Sirr, TU Dublin, warned this trend will significantly impact homeownership rates, which declined from 70% in 2011 to 66% in 2022. Jean Behan, Sherry FitzGerald, noted consistent shortages across all housing segments, driving up prices and rents. The government aims to deliver over 300,000 new homes by 2030, with 90,000 earmarked as starter homes, but Sirr believes the declining open market share will further reduce homeownership and increase reliance on the private rental sector, leading to societal pressures and longer commutes.