Published yesterday (Wednesday ), the OECD report provides a comprehensive analysis of Ireland's current economic performance, identifying key challenges and providing policy recommendations which aim to enhance the country's economic resilience, competitiveness and sustainability.
The report identifies significant mismatches in housing supply and demand, particularly in Galway's urban core. Despite the city's growth as a hub for medical device manufacturing and technology, housing shortages have become a pressing issue, impacting both affordability and availability. High housing costs are now seen as a barrier to attracting international talent, a concern which has long been echoed by local businesses and multinational enterprises operating in Galway.
The report highlights Galway city, alongside Limerick and Waterford, as being 'earmarked for specific residential density targets under new planning guidelines' which were introduced in 2024.
These guidelines aim to 'foster compact, sustainable growth while addressing the acute housing demands in urban areas'.
For Galway, the target densities range from 100-250 dwellings per hectare in the city centre, 50-150 in urban areas, and 35-50 (potentially up to 100 ) in suburban or edge locations. This strategic framework is designed to "optimise land use, promote brownfield redevelopment, and curtail urban sprawl."
Galway's housing landscape is further complicated by notable vacancy rates, with the number of empty properties in Galway (6 per cent ) nearly 50 per cent higher than the national average (3.9 per cent ). The report highlights vacancy in both the city and county as being at a level that 'warrants attention', which will ideally come in the form of the new Residential Zoned Land (RZL ).
Galway City Council outlines the RZL tax as being a measure which aims to 'activate serviced, zoned land for residential or mixed-use' and as a result will 'boost the housing supply and regenerate vacant, idle urban land'. Introduced in the Finance Act 2021, the RZL will be due from this month on, becoming payable from May 23, 2025.
To address these challenges, the OECD has recommended a multi-faceted approach for Galway, one which focuses primarily on enhancing housing affordability, optimising land use and improving the planning process through the newly enacted Planning and Development Act 2024.
As Galway continues to evolve, these insights from the OECD report provide a roadmap for sustainable growth, aiming to balance economic vitality with livability.
“Housing supply has not kept up with rising population growth and housing availability and affordability challenges affect both the wellbeing of certain segments of society and the economy’s competitiveness,” said OECD Chief Economist Álvaro Pereira yesterday (Wednesday ) while presenting the survey alongside Minister of Finance, Paschal Donohoe.
“A better coordinated and forward-looking approach to housing policies is needed to create investment certainty and increase housing supply.”
