I nuovi inizi di casa sono al livello più basso dal 2016

The Government released misleading numbers purposely before the last election.

Sad to see this.

Starting construction of a house or more likely a housing estate is an expensive endeavour. Planning complications, legal challenges, massive civil bureaucracy and regulations slow things down.

But I suspect that a substantial factor in the lack of start-ups is the missing capital. Builders do not have the hundreds of million needed to complete projects on hand, is all financed and many properties are sold off the plans.

One of the biggest groups of buyers were those who bought the property as an investment just to let it out. The rent caps ensure that they cannot increase rates in line with inflation, maintenance is more expensive, insurance is more expensive, many cases property management fees are higher et cetera et cetera.

That’s why the vast majority of countries that have imposed rent caps got rid of them eventually.

Many of them are not going to sink half a million into an investment or they cannot increase rates no matter how high their costs get.

But this is a national statistic, everyone’s individual mileage varies. I am sure that in some parts of the country housing projects are continuing as normal.

That’s just the way it goes.

Apart from the huge domestic friction and discontent this crisis brought to Ireland past 2 decades, there is an unspoken side of this crisis.

The great growth leap Ireland missed (and will not come back). Let me explain.

Ireland had an unparalleled upper hand when it comes to immigration no other EU country had. With all the multinationals operating here and the talented, skilled immigration flowing in Ireland had the chance to expand exponentially and become true power house of Europe when it comes innovations and concentration of skilled labour.

Multinational bring skilled workers, they buy houses and settle, then entrepreneurs move in to service the skilled about which in return bring in more immigration who is looking forward to work (not sit on social benefits as right wingers claim).

Despite the general negative outlook on immigration across the wold, when you put feelings, misinformation and anecdotal discontent (us vs them) aside, immigration is still, YES, to this day in 2025 a major economic driver!

Ireland missed HUGE on this, as it became an unfavorable place to move to, because of housing crisis and cost of living in this country.

The other huge benefit of having ample/sufficient housing supply Ireland missed on is domestic expenditure. People spend more on entertainment, travel, food, leisure, retail when they don’t have to save ridiculous amounts of down payments and paying mortgages for decades which in return stimulates the domestic economy like no other flow of money.

Is it too late for Ireland?

Sadly, pretty much. We do not know how long more US Dollar will be the norm for international trade. How long more multinational will be able to operate from Ireland and the small but notable efforts from continental European users to wean out of American and Chinese dependency should be a warning for Ireland.

Because once multinationals and pharmaceuticals withdraw, what can Ireland offer to stay competitive and have any economic significance in Europe?