Measures needed to address ‘severe shortage’ of housing in Kilkenny

A ‘severe shortage’ of new homes on the market in Kilkenny is adversely impacting companies operating here as well and companies considering setting up here, according to a new study.

The study, conducted by property agents Hooke and MacDonald, focused on the demographics and housing market in Kilkenny.

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It came to the conclusion that measures need to be introduced urgently by the government to make it viable and fundable for builders and developers to provide housing in Kilkenny and throughout the country.

“One of the main problems is the lack of viability for new housing and this is getting worse as a result of rising interest rates and construction cost inflation,” the study says.

“At current selling prices prevalent in the city and county it is not profitable or fundable to build new home developments in many instances.”

There were just 194 new estate houses built in Kilkenny in 2022 and a total of 660 built in the five year period 2018-2022.

The lack of viability for apartment construction has been deemed ‘particularly severe’.

It comes as housing charities this week warned that ‘unprecedented numbers’ of people could become homeless as a result of the Government’s plan to lift the eviction ban for rented properties.

Meanwhile, the IPOA has said the decision was crucial in order to stem the exodus of landlords from the property rental market.

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Despite this, there remains a strong demand in Kilkenny from first time buyers and also people trading up and down and renters.

Remote working has also added to the demand for housing in the county, for both purchase and rental.

The study highlights that the ‘need for completion of infrastructure works including supply of water and other services’ has also been a factor in getting many of the planned new residential developments started.

There are however indications that a number of developments that have secured planning permission may get started shortly.

As long established companies in the county continuously expand through innovation and growing their workforce, they are also being joined by new companies.

The CSO’s Business Demographic Survey reports that there were 4,635 businesses operating in County Kilkenny in 2018 with 20,321 people employed.

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The retail and wholesale sector was the largest employer at 23 per cent, followed by manufacturing at 20 per cent. Hospitality was at 12 per cent.

Kilkenny has grown strongly in shared services operations, with a sizable portfolio of international financial services companies and is expanding steadily across a range of sectors.

Take Abbott Ireland for example, part of the US multinational healthcare giant Abbott Laboratories.

The company recently received approval from Kilkenny County Council to construct a major medical device manufacturing centre at the city’s IDA Business and Technology Park.

This expansion will allow the company to increase its employment levels by approximately 1,000 people.

A lot of these jobs will be secured by local people but there will be some jobs, particularly high-end jobs, that will presumably be secured by people outside of the county.

These people may seek to move to Kilkenny and contribute back to the local economy by living here, but their plans may be thwarted by the county’s current property market.

Likewise, for local people who go on to secure some of these upcoming jobs, many may seek to move from the rental sector to private home ownership, a task that has grown increasingly difficult in recent years.

One year after the 2022 census the county’s population is now estimated to be close to 105,000, reflecting Ireland’s in-migration trend, influenced by the Ukrainian War, (net inward) returning Irish people and also by worldwide refugee movements.

There has been an increasing need for apartments in recent times due to changing demographics however Kilkenny contains only 0.4% of the stock of apartments in Ireland, compared to 2% in Waterford and 0.9% in Wexford.