New Housing Commencements Fall to Six-Year Low of 24,499 Units by May 2026

New Department of Housing data reveals that housing commencements have fallen to levels last seen six years ago, below the 10-year average. Between June 2025 and May 2026, 24,499 units were commenced, marking the fourth-lowest level in a decade. Similar figures were recorded in 2019 (24,438) and 2020 (23,617).

Despite this, Minister for Housing James Browne announced «strong momentum» in May 2026 with 2,099 units started, a 103 per cent increase from 1,035 in May 2025. A department spokesman noted that January to May 2026 recorded the second-highest commencement total since tracking began in 2015, with 13,000 homes started, a 161 per cent increase from 5,033 in the first five months of last year.

The 24,499 commencements to May 2026 are below the 10-year average of 28,533 homes. This is also down from 27,855 in the year ending May 2023 and 30,233 between June 2021 and May 2022. Commencements spiked in 2023 (52,665) and 2024 (41,493) due to government incentives, including waivers on local authority charges and refunds on water connection fees. The department stated the fall in 2025 was «not unexpected» following these high numbers.

Government officials have expressed concerns that recent commencements may not translate into completed homes, with some builders registering projects to avail of waivers without progressing construction.