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