Census figures on vacant Irish housing published.

The choreography of information releases following the Irish Census 2011 undertaken in April 2011, continues this morning with a glossy release of selected statistics which includes important new information on vacant Irish housing. Of course vacant housing has risen to prominence after the unfettered building boom of the early 2000s where our annual new housing construction numbers rivalled those of theUK which has 15 times theRepublic ofIreland population. In summary, we overshot and built far more homes than we needed, and today we are still unwinding that legacy by which I mean the available supply of vacant homes nationally outstrips the demand for homes.

This morning’s publication confirms that we still have a significant problem nationally with 289,451 vacant homes of which 59,395 are classified as “holiday homes”. This compares with 49,789 holiday homes recorded in 2006 which is interesting given the colossal economic contraction that occurred between 2008-2011 – you might have thought that holiday homes would have been amongst the first victims of the recession though perhaps the increase is driven by foreign purchases.

The overall level of vacant housing including holiday homes is put at 14.5% – 289,451 as a percentage of 2m total dwellings – which is double that of our neighbours in Northern Ireland. There were 266,331 vacant homes – including holiday homes – in the State at the time of the last Census in 2006, so the number of vacant homes has increased but because the number of homes overall has also increased proportionately more, the vacancy rate has actually dropped by 0.5% from 15% to 14.5%.

So we have 230,056 vacant homes which are not holiday homes. This is out of a total housing stock of 2m homes. Any country will have a “normal” level of vacant homes, be they second homes or vacant homes for sale. The most recent estimate from Ireland’s “National Institute for Regional and Spatial Analysis”  that I have seen, is that we still have an overhang of vacant property of 80-100,000 homes nationally and by “overhang”, this means a vacancy level above the long term normal vacancy level.. And on a national basis, this overhang is likely to be a drag on any house price recovery, and is likely to be a factor in future price declines. It should be said that although the national picture still shows an extraordinary level of vacancies, the picture at a county level (shown below) is less clear. We see thatDublin and surrounding counties have vacancy levels of 5-10% whereas much of Connacht andUlster have vacancy levels of 15-22%. And although the report doesn’t zoom in further to locations within each county, it stands to reason that there will be variations which may mean there is little if any overhang in some specific locations within counties.

But overall, nationally we can still say we have a problem with vacant housing.

UPDATE: 29th March, 2012. There is a helpful note on the approach taken in counting vacant homes, the note is available in the Appendix published by the CSO today to accompany its main release and says “Vacant Dwellings In identifying vacant dwellings, enumerators were instructed to look for signs that the dwelling was not occupied e.g. no furniture, no cars outside, junk mail accumulating, overgrown garden etc., and to find out from neighbours whether it was vacant or not. It was not sufficient to classify a dwelling as vacant after
one or two visits. Similar precautions were also taken before classifying holiday homes. Dwellings under construction and derelict properties are not included in the count of vacant dwellings. In order to be classified as under construction, the dwelling had to be unfit for habitation because the roof,
doors, windows or walls had not yet been built or installed.”