Stockbroking firm Davy has revised downwards its forecast for housing completions for this year and said the shortfall in new builds will persist until 2035.
In its latest economic commentary, it said it expects 44,000 homes will be completed this year, down from its previous estimate of 50,000, reports RTE.
It said this is due to lower housing commencements than had been previously anticipated.
It has also forecast that 42,000 homes will be built next year, a small decline on 2026, reports RTE.
As a result, Davy said projected supply will be “still well below our estimate of overall requirements.”
However, the organisation said the economy remains strong and has revised upwards its projections for this year, next year and 2028, reports RTE.
It has forecast growth of 5% in national income for 2026 and 2027.
It said consumer spending has remained resilient despite the increase in the rate of inflation, reports RTE.
“A higher estimated household savings rate last year implies additional buffer against cost-of-living pressures.”
It also said it expects budget surpluses to remain “substantial” and says they would be “supported by economic growth and corporation tax receipts,” reports RTE.
It said this would allow the Government to continue funding infrastructure investment and meet its planned contributions to the sovereign wealth funds even if there is a decline in the public finances, reports RTE.
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