Local authorities should get construction companies to tackle housing crisis, says economist

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Local authorities should get construction companies to tackle housing crisis, says economist via IrishTimesBiz

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The plan also aimed to build 25,000 new dwellings annually on average over the course of the six years, but it never achieved this with an average build of 17,000 annually and the closest it got to the target was in 2020 when 20,514 new units were built, leaving a cumulative shortfall of 30,746. Of the 148,037 social housing units created, the number of new units built and added to the housing stock was 28,171 which was 6,000 below the actual new build target of 34,210 with rentals accounting for 99,813 of these new units, over 3,000 more than the target of 96,110, he said.

Local authorities built some 9,855 between 2016 and 2021, all built by private developers at a total cost of €2.919 billion while Approved Housing Bodies built 9,064 at a total cost of €804 million. Dr Leddin pointed out that these figures from 2019 for new build schemes approved under the social housing element of the plan did not include the cost of land or design and technical fees or utilities or other costs.

He said that, as of 2021, some 61,907 tenants in supported rented accommodation were getting on average €8,755 in HAP payments while another 17,183 occupants, also in supported rented accommodation, were each receiving €7,100 in RAS payments.

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IrishTimes Why would construction companies work.for a council when private sector gives bigger profits? Also, councils are running out of land..

The necessity of the state directly constructing housing was understood over 80 years ago. So the housing catastrophe now is a matter of government policy where the provision of housing is left to the logic of the market and commercial profits are prioritised above all else.

Where would the workers live?

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