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Home Construction Hits 2025 High as New Housing Starts Surge in September

Building activity across Ireland picked up pace in September, with construction starting on 1,653 new homes — the highest monthly total recorded so far this year, according to new figures from the Department of Housing.

The data shows a 43% increase in commencement notices compared to August, signalling renewed momentum in the housing sector after months of fluctuating activity. Between January and September 2025, a total of 10,193 commencement notices were lodged nationwide, reflecting a steady rise in housing starts as the government pushes to boost supply in the face of persistent demand.

On a rolling 12-month basis, from October 2024 to September 2025, 27,210 commencement notices were filed, underscoring sustained construction levels over the past year.

Breaking down the figures, scheme dwellings accounted for the largest share of new builds in September, representing 41% of total commencements. Apartments followed closely at 34%, while one-off houses made up 25% of the total. The mix reflects ongoing efforts to balance urban development with individual housing projects, as local authorities and developers respond to differing regional housing needs.

The capital remains a key hub for new construction, with 23% of all September housing starts located across Dublin’s four local authorities. Dublin City topped the list for the most commencement notices lodged so far this year, followed by Cork County and Fingal County. These areas continue to experience strong population growth and pressure on housing supply, driving developers to accelerate new projects.

The Department of Housing noted that the consistent rise in commencements through 2025 demonstrates both developer confidence and the impact of ongoing government initiatives aimed at increasing housing output. However, housing analysts caution that while commencement numbers are a positive indicator, the pace of completions will be critical in determining whether new supply can meet national targets and alleviate pressure in the rental and purchase markets.

September’s surge in activity offers some encouragement for policymakers facing public concern over affordability and access to housing. With the final quarter of the year underway, attention now turns to whether the construction sector can maintain its momentum through the winter months and deliver on commitments to expand Ireland’s housing stock in 2025.

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