The Economic and Social Research Institute says the low level of unemployment in Ireland means solving the housing shortage will require large numbers of building workers from overseas.
In its report, 'Capacity constraints in the Irish economy? A partial equilibrium approach by Kieran McQuinn', it says, published on November 21, 2018, it says: “Employment levels in construction compared to those over the past 20 years are still quite low as is the proportion of employment in construction.
'Low level of housing supply'
“However, in spite of the low level of housing supply at present, employment in construction is relatively high. This suggests that employment in construction would have to increase to elevated levels in order for increased housing supply to be provided.
“It now appears that much of the additional labour required for housing supply and other construction and infrastructural work would have to be secured through inward net migration; most of this additional labour supply would likely come from immigration.”
The think-tank also warned that the “high cost of accommodation may act as a disincentive for workers seeking to come and work, particularly in the greater Dublin area”.
To access the report, see here:
https://www.esri.ie/pubs/RN20180401.pdf