Ireland's Housing and Infrastructure Crisis: A Call to Action for Elected Politicians

Strategic Insights -

Ireland's housing and infrastructure crisis has been worsening for decades, with the country facing a yawning output gap between housing supply and estimated structural demand. Elected politicians, particularly those in positions of power like Tanaiste Simon Harris and Taoiseach Micheal Martin, have failed to address the issue, instead relying on bureaucratic solutions that only exacerbate the problem. The situation calls for bold action from leaders who are willing to take unpopular decisions and face the consequences of their actions.

Key Takeaways:

  • The Planning and Development Act, a 906-page monstrosity, is a prime example of how complexity and bureaucratic red tape hinder progress in addressing the housing crisis.
  • The government's decision-making process is plagued by a lack of experience and a failure to think systemically, as exemplified by the appointments of James Browne and Simon Harris to deal with the housing crisis.
  • The country's regulatory impact analysis and the creation of new bodies, such as the accelerating infrastructure taskforce, have failed to produce meaningful results and only serve as public relations alibis for political failure.
  • Elected politicians must lead and push for solutions, often by taking unpopular decisions, rather than relying on bureaucratic mechanisms that only perpetuate the status quo.
  • Streamlining procedures, rewarding success, and sanctioning failure are essential management precepts that must be implemented to address the housing crisis.

Statistics:

  • The estimated structural demand for housing in Ireland is significantly higher than the annual new dwelling completions, with a yawning output gap of 40,000 units in 2021 and 30,000 units in 2022.
  • The Housing for All targets for 2021-2024 and 2025-2030 are vastly underestimating the actual demand for housing.
  • The gap between estimated structural demand and housing completions has gradually increased over the years, with the 2023 gap reaching 100,000 units.

Sources:

  • CSO (Central Statistics Office)
  • Central Bank of Ireland
  • Housing for All