The Social Democrats today launched a new proposal for the creation of a State Construction Company that would deliver homes at the scale required to solve Ireland’s deepening housing crisis.
Under the party’s proposal, a State Construction Company would operate alongside existing market delivery of housing, playing a significant role in providing more affordable and social homes.
Speaking at the launch of the proposal today, Social Democrats housing spokesperson Rory Hearne TD said:
“The State must become a direct developer and builder of homes to solve the housing emergency. This would bring additional stability to the sector, with permanent public capacity to deliver housing.
“The Social Democrats want the State and not-for-profit housing sector to directly deliver housing on a massive scale through a historic programme of social and affordable home building. This is what was done in Ireland in the past by local authorities and the National Building Agency – and there is no reason why it can’t be done again.
“Without such direct delivery, the radical reset in housing policy required to solve this emergency will not be achieved.
“While private developers and builders will still have a role in housing delivery under our proposal, it is clear that the total reliance on this model under Fianna Fáil/Fine Gael-led governments has failed to deliver affordable homes at the scale needed.
“Just as we do not leave it exclusively up to the private for-profit health providers to care for our citizens, or private schools to educate our children, we should not take a laissez faire approach to housing.
“Ireland’s housing disaster is worsening by the day. Our proposal would be a gamechanger after decades of failed housing policy by successive governments.”
Dr Tom McDonnell, co-director of the Nevin Economic Research Institute, who was a guest speaker at today’s launch, said:
“The Social Democrats’ proposal makes sense for a number of reasons. A State Construction Company can prevent the boom/bust cycle that has plagued us for decades. In addition, a State builder could reduce costs by eliminating profit margins, bulk purchasing, use of standardised designs, economies of scale and lower staff turnover costs.”
Under the Social Democrats’ plan, a State Construction Company would:
- Result in the delivery of 5,000 homes within three years, with production ramped up from this point.
- Directly employ all the necessary construction skills, including engineers, surveyors, block layers, scaffolders, carpenters, plumbers, electricians, fitters, and construction project managers.
- Provide quality permanent employment and apprenticeships to help attract a sufficient number of workers to the sector.
- Create four regional modular home factories to allow Ireland boost housing supply by using Modern Methods of Construction (MMC).
- Work with local authorities and Approved Housing Bodies (AHBs) to deliver a significant increase in the number of new homes being delivered to meet our housing targets.
February 4, 2026
Note: read our State Construction Company proposal in full here