What has caused the Irish housing crisis

The first link [1] provides an explanation that the housing crisis in Ireland is due to Irish property being
placed in the hands of companies seeking to maximize profit.

The second link [2] mentions the cause of the Irish housing crisis as the lack of houses due to the increase in
population, which is the result of global companies basing their EMEA operations in Ireland.

The third link [3] explains that the Irish housing crisis is caused by an influx of people and shortage of
properties. It also mentions that hundreds of tenants have been spotted as a result of this crisis.

References:

[1] https://independentleft.ie/the-housing-crisis-causes-and-solutions/

[2] https://wineandrum.com/dublin-housing-crisis-explained/

[3] https://www.foxnews.com/world/ireland-housing-crisis-causes-hundreds-line-block-hours-view-
apartments

The first link [1] provides an explanation that the aim of Irish housing policy was not to provide affordable
housing, but rather to facilitate and support rising housing prices and rents, so that property would become
a lucrative investment for developers and investors.

The second link [2] highlights that the Irish housing crisis has been brewing for years due to a lack of supply.
The article suggests that the solution lies in targeted strategies, but there is no quick fix.

The third link [3] discusses the Housing for All plan introduced by the Irish government to increase the supply
of social and affordable housing. However, the article suggests that the plan is failing to meet its targets and
is hopelessly inadequate in addressing the housing crisis.

1. https://www.thejournal.ie/readme/ireland-investment-housing-5428746-May2021/
2. https://www.irishtimes.com/life-and-style/homes-and-property/no-quick-fixes-eight-ways-to-solve-
ireland-s-housing-crisis-1.4570646
3. https://www.oireachtas.ie/en/debates/debate/dail/2022-10-26/7/
 What has caused the Irish housing crisis

Why don't the Irish government build social housing?

There are several reasons why the Irish government has not been able to build enough social housing:
Funding: Building social housing requires a significant amount of funding, and the Irish government has been
facing budget constraints in recent years due to the economic recession and austerity measures.
Planning and regulations: The process of building social housing can be complex, and there are various
planning and regulatory hurdles that must be overcome before construction can begin.
Land availability: In urban areas, finding suitable land for social housing can be a challenge. This is because
land prices in cities are often high, and there may be competition with private developers for available land.
Private sector involvement: In recent years, the Irish government has relied heavily on the private sector to
provide housing, rather than building social housing themselves. This has been due to a lack of funding and
expertise in the public sector.
Political will: Building social housing can be a politically contentious issue, with some politicians and
communities opposing the construction of social housing in their areas.

Overall, a combination of funding constraints, planning and regulatory hurdles, land availability, private
sector involvement, and political will have contributed to the Irish government's inability to build enough
social housing to meet demand.
 What has caused the Irish housing crisis

The Irish housing crisis is a complex issue that has been developing over the past few decades. There are a
number of factors that have contributed to the crisis, and it is important to consider each of them in order to
fully understand the problem. Here are some of the main factors that have caused the Irish housing crisis:
1. Lack of Supply
One of the main causes of the Irish housing crisis is a lack of supply of affordable housing. Ireland's
population has been growing rapidly, and there has not been enough new housing construction to keep up
with demand. This has resulted in a shortage of available housing, and has driven up prices to unsustainable
levels.
Link: https://www.irishtimes.com/business/economy/ireland-needs-30-000-homes-a-year-for-a-decade-to-
meet-housing-demand-1.4144119
2. High Construction Costs
The cost of building new homes in Ireland is high, which has made it difficult for developers to build
affordable housing. The cost of materials, labour, and land have all contributed to high construction costs,
and have made it difficult to build new homes that are affordable for most people.
Link: https://www.irishtimes.com/business/economy/ireland-s-housing-crisis-6-reasons-why-everything-is-
going-wrong-1.3868102
3. Planning Regulations
Planning regulations in Ireland are complex and can be difficult to navigate, which has slowed down the
construction of new homes. The planning process can take years, and developers may need to make
significant changes to their plans in order to meet local planning regulations.
Link: https://www.independent.ie/irish-news/news/explainer-why-are-planning-regulations-blamed-for-
irelands-housing-crisis-36292609.html
4. Homelessness
The homelessness crisis in Ireland has worsened in recent years, with thousands of people sleeping on the
streets or in emergency accommodation. This has put further pressure on the housing market, as people
who are homeless are competing with others for available housing.
Link: https://www.irishtimes.com/news/social-affairs/ireland-s-homelessness-crisis-how-did-we-get-here-
1.3597512
5. Foreign Investment
Foreign investment in the Irish property market has increased in recent years, which has driven up prices and
made it more difficult for local buyers to purchase homes. Foreign investors may purchase properties for
investment purposes, which can take homes out of the market and make it more difficult for local buyers to
find affordable housing.
Link: https://www.rte.ie/news/ireland/2020/0206/1113646-foreign-buyers/
 What has caused the Irish housing crisis

The Irish housing crisis has been an ongoing issue since the economic crash of 2008. There are several factors
that have contributed to the crisis, including government policy, demographics, and the housing market
itself.

Government Policy:
A major contributing factor to the housing crisis in Ireland has been government policy, particularly in
relation to social housing provision. The Irish government has not built enough social housing to meet
demand, resulting in long waiting lists for those in need of affordable housing. The government has also
been criticized for the slow delivery of social housing units, with many developments experiencing significant
delays.

Demographics:
The demographics of Ireland have also played a role in the housing crisis. The country has experienced
significant population growth in recent years, driven in part by immigration. This has increased demand for
housing, particularly in urban areas, where there is a limited supply of affordable housing.

Housing Market:
The housing market itself has also contributed to the crisis. Following the economic crash of 2008, there was
a significant reduction in housing construction, resulting in a shortage of new homes. This has driven up the
cost of existing homes, making them unaffordable for many first-time buyers. In addition, the buy-to-let
market has led to a shortage of rental properties, further exacerbating the crisis.

Land Use:
Land use regulations, including zoning and planning restrictions, have also been a significant factor in the
housing crisis. The Irish planning system is often slow and bureaucratic, making it difficult for developers to
build new housing developments. There is also a limited supply of land available for development in urban
areas, which has led to high land prices and a lack of affordable housing.

Banking Crisis:
The banking crisis that occurred in Ireland in 2008 also played a role in the housing crisis. Following the
crash, many banks withdrew from the Irish market, reducing the availability of mortgage financing. This
made it more difficult for first-time buyers to access the housing market, further exacerbating the crisis.

Overall, the Irish housing crisis is a complex issue with multiple causes. Government policy, demographics,
the housing market, land use regulations, and the banking crisis have all contributed to the crisis, making it a
difficult problem to solve. Addressing the crisis will require a multi-faceted approach that involves increasing
social housing provision, improving the planning system, and making it easier for developers to build new
homes.
 What has caused the Irish housing crisis

Why does the Irish Government treat housing as an investment asset and not a home?

The Irish government's treatment of housing as an investment asset rather than a home can be attributed to
a number of factors, including historical policy decisions, a lack of political will, and the influence of market
forces.
One of the main reasons for the government's focus on housing as an investment asset is the historical
legacy of Irish housing policy. Since the establishment of the Irish Free State in 1922, successive governments
have prioritized home ownership as a means of building wealth and stability in Irish society. This policy was
reinforced in the 1960s and 1970s, when the government introduced a range of tax incentives to encourage
home ownership, including mortgage interest relief and the exemption of capital gains tax on the sale of a
family home.
This focus on home ownership as an investment has continued to shape Irish housing policy in more recent
years, with the government introducing a range of measures to encourage property investment, such as the
introduction of Real Estate Investment Trusts (REITs) in 2013. REITs are investment vehicles that allow
investors to buy shares in a portfolio of properties, providing a means of investing in the property market
without owning physical property. This has encouraged investment in the Irish property market, but has also
contributed to rising property prices and a lack of affordable housing.
Another factor contributing to the government's focus on housing as an investment asset is the lack of
political will to address the housing crisis. Many politicians are reluctant to tackle the root causes of the
crisis, such as a lack of social housing and planning regulations that limit the supply of affordable housing, as
these measures may be seen as politically unpopular or may conflict with the interests of property
developers and investors.
Market forces also play a role in the government's treatment of housing as an investment asset. Ireland's
rapidly growing economy and population, combined with a shortage of housing supply, have created a
lucrative market for property investors. This has encouraged the government to prioritize policies that
support property investment, rather than addressing the underlying causes of the housing crisis.
In summary, the government's focus on housing as an investment asset rather than a home can be
attributed to a range of factors, including historical policy decisions, a lack of political will, and the influence
of market forces. However, this approach has contributed to the ongoing housing crisis in Ireland, and a shift
towards a more socially-oriented approach to housing policy is necessary to address the crisis and ensure
that everyone has access to affordable and secure housing.

The Irish government's approach to housing as an investment asset rather than a basic human need has
been a source of controversy in recent years. This approach is driven by the country's neoliberal economic
policies, which prioritize market-driven solutions over government intervention.
The government has incentivized property investment through tax breaks and other policies, leading to a
housing crisis characterized by skyrocketing rents and unaffordable homes. This has resulted in many people
being forced to live in inadequate or overcrowded housing, or to become homeless.
Critics argue that the government needs to prioritize social housing as a basic human right, rather than
treating it as a commodity to be bought and sold for profit. This would require a shift away from market-
driven policies and towards a more interventionist approach, including increased public investment in
affordable housing and stronger tenant protections.
 What has caused the Irish housing crisis

It is true that the Irish housing market has seen a significant increase in the number of investment properties
over the past few years. There are several reasons why this trend has emerged, including:
 Tax incentives: The Irish government has provided a number of tax incentives to encourage
investment in property, such as mortgage interest relief, capital gains tax exemptions, and the Rent-
a-Room scheme. These incentives have made it more attractive for people to invest in property as a
means of generating income and building wealth.
 Lack of affordable housing: Ireland is currently experiencing a housing crisis, with a shortage of
affordable housing for both renters and buyers. This has led to increased demand for rental
properties, which in turn has driven up rents and property prices. As a result, many people have
turned to property investment as a way to secure a place in the market and generate income.
 Cultural attitudes: In Ireland, there is a long tradition of property ownership and investment, with
many people viewing property as a safe and secure investment. This cultural attitude has
contributed to the growth of the investment property market, as people see property ownership as
a way to build wealth and secure their financial future.

While there may be benefits to investing in property, this trend has also had negative impacts on the housing
market, including pushing up property prices, making it more difficult for first-time buyers to enter the
market, and contributing to the shortage of affordable rental properties. Some critics argue that the Irish
government's policies have encouraged this trend, and that more needs to be done to address the root
causes of the housing crisis and ensure that housing is treated as a basic human need rather than a
commodity for investment purposes.

Here are some links to articles and sources that may provide further information:

"Ireland's housing crisis: a timeline" (The Irish Times):

https://www.irishtimes.com/news/social-affairs/ireland-s-housing-crisis-a-timeline-1.3475067
"Why Ireland's housing crisis is not just about supply" (The Guardian):
https://www.theguardian.com/cities/2019/feb/12/why-irelands-housing-crisis-is-not-just-about-supply
"The Irish Housing Market: Key Trends and Issues" (Irish Economic and Social Research Institute):
https://www.esri.ie/system/files/publications/WP522.pdf
https://www.irishtimes.com/business/economy/2023/01/29/irelands-housing-crisis-why-doesnt-the-state-
step-in-and-build/

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