Mayo housing crisis deepens with 43% drop in new home completions

Mayo’s housing crisis has deepened dramatically as new data reveals a staggering 43% drop in home completions across the county in the second quarter of 2025 compared to the same period last year.

Only 91 homes were completed between April and June this year, down from 161 in Q2 2024 - a shortfall of 70 units.

Westport saw the steepest drop, plummeting from 49 completions to just 18, while Castlebar and Claremorris also recorded significant declines.

Improvements in the county's housing outlook appear unlikely on the horizon, as just 103 commencement notices were issued between January and June of this year, the lowest figure for the period since 2016, and a sharp decline from 289 last year.

Commencement notices are mandatory before construction can begin and are used as a key early indicator of future housing delivery.

Local elected representatives and industry experts have criticised both national policy and local implementation, warning that Mayo is at risk of a housing standstill.

Independent Castlebar Councillor Harry Barrett described the figures as proof that the government has lost control of housing policy.

“The news that Castlebar completions are down by 28% compared to last year shows how little grip this government has on the crisis,” he said.

“We need to give local councils the power and funding to build directly, as we did 40 years ago. People are struggling, especially working families, and they’re getting angry.”

Councillor Barrett pointed to delays in planning, rising building costs and soaring finance rates as critical barriers. Industry insiders point towards planning gridlock and banking failures as a reason for the drop-off.

Joe Moran of Moran Auctioneers echoed concerns about financing and bureaucracy: “Faster, more efficient planning and targeted incentives for smaller developers would make a difference. Right now, delivery is being choked at every stage.”

Declan McAndrew of WestTherm Construction who builds ICF homes across Mayo has noted a marked decline in demand and supply chain activity since January, with suppliers reporting a 30% drop in business.

“We’re seeing fewer people building. Definitely there was fear around Trump’s tariff threats. Hopefully confirmation of 15% will provide certainty but there are still finance difficulties, and the real issue around planning uncertainty, without a doubt the drop-off is real.”

Fine Gael Councillor Peter Flynn, cathaoirleach of the West Mayo Municipal District, was scathing in his assessment of Mayo County Council’s housing approach.

“I’m not surprised by these numbers. Housing delivery and planning are broken in Mayo,” he said.

“The council focuses only on small-scale projects tied to departmental metrics, instead of facilitating sustainable development.

"Their over-reliance on turnkey social housing is squeezing working families out of the market.”

Councillor Flynn called for a refocus on housing for working people and urged planners to utilise vacant upper floors in town centres, that were once upon a time unlocked through CPOs (Compulsory Purchase Orders) by former town councils.

“We need to revitalise town centres with three- and four-storey buildings used for housing. There’s massive potential being wasted.

“Builders want to build but the banks are stopping them.”

Castlebar-based councillor and estate agent Cyril Burke noted the pressures facing small developers.

“There are builders with planning and the skills ready to go, but banks are shutting them out. If they have any mark on their record, they’re refused.

“These are the people who proved they could build back in the boom; we need them again. Then they turn to non-bank lenders and get crucified on rates.”

Councillor Burke also flagged the difficulty of staging and delivering developments under current banking lending rules, with banks only releasing funds after major upfront infrastructure work is complete, leaving developers in a catch-22.

“They’re told to build, let’s say, four homes in a first phase, but they have to finish everything, roads, landscaping, snagging before they see a cent. It’s unworkable.”

The Department of Housing this week increased Mayo’s annual housing delivery target from 501 to 1,111 new homes per year under the Housing Supply Target for 2025–2034 - more than doubling the county’s obligations.

Mayo County Council previously met just 77% of its previous target, delivering 304 homes out of a target of 395, ranking 20th out of 31 local authorities.

But councillors remain sceptical without planning reform or improved executive accountability.

“Unless senior council staff are held to account, we’ll continue to see failure,” Councillor Flynn warned.

Calls are also growing for a re-examination of zoned lands in upcoming Local Area Plan reviews, as some councillors argue that overly rigid planning is compounding the problem.

“We need flexibility on zoning,” said Burke. “There are young people in Mayo living at home who deserve a chance to own. We need to create that supply.”