Housing commencements hit 16,412 in 2025 as December sees sharp year-end surge
Department data shows December starts doubled month-on-month, with modern construction methods now planned for most scheme housing
16 January 2026 | 📧 editor@ipropertyradio.com
A total of 16,412 new homes were commenced in Ireland during 2025, according to data published by the Department of Housing, Local Government and Heritage, with a sharp acceleration recorded in the final month of the year.
Commencement data for December 2025 shows 3,065 new housing units began construction, double the November total of 1,533 units and the highest monthly figure recorded during the year. The next highest month was September, with 1,656 commencements.
The December increase aligns with recent indicators from the AIB construction purchasing managers’ index, which showed new orders returning to growth in December, supported by rising client demand, increased enquiries and a more optimistic outlook for 2026 across the sector.
While the 2025 total was lower than the 2024 outturn, when measures such as the development levy waiver and the Uisce Éireann rebate accelerated project commencements, longer-term trends show a sustained uplift. Across 2024 and 2025 combined, 85,723 homes were commenced, a 43% increase compared with the previous two-year period of 2022 and 2023, when 59,758 units were started.
Over the five-year period from 2021 to 2025, a total of 176,206 homes were commenced nationally.
Of the 3,065 units started in December 2025, apartments accounted for the majority at 1,820 units, or 59%. Scheme houses represented 979 units, or 32%, while 266 units, or 9%, were one-off homes.
The Department also published, for the first time, data on the intended use of Modern Methods of Construction (MMC) within commencement notices. From July to December 2025, MMC was planned for 69% of homes in scheme developments, with timber frame construction accounting for 61% of those units. Among apartments, 44% were intended to be built using MMC approaches.
MMC refers to a range of manufacturing-led and off-site construction techniques designed to reduce build times, improve cost certainty and lower emissions. The Department estimates that such methods can reduce construction timelines by up to 40% compared with traditional building approaches.
The Government’s Housing Action Plan, Delivering Homes, Building Communities 2025–2030, commits to expanding the use of MMC across public and private housing delivery, including support for 3D volumetric construction through pilot and pathfinder projects. Current examples include schemes progressing in Limerick and Wexford.
All housing delivered under the Local Authority Accelerated Delivery Programme is required to use MMC, with more than 1,500 homes across 13 local authorities expected to be delivered through this approach.
The MMC data is drawn from commencement notices submitted via the Building Control Management System and was developed through a cross-departmental steering group involving the Department of Housing, the National Building Control and Market Surveillance Office, the Central Statistics Office and the Department of the Taoiseach.
