Despite 1,000 homes being built in Limerick in 2024, estimates from the Housing Commission suggest the city needs between 2,000 and 4,500 new homes annually to meet demand. Limerick ranks fourth nationally in the delivery of affordable homes, accounting for just 5.4% – far behind Dublin (61.5%), Cork (25.5%), and Waterford (5.5%).

The Mid-West Economic Insights Report 2025 also raised alarms about the role of state interference in the private housing market. In 2023, nearly 60% of housing purchases in Limerick were made by non-household entities, including approved housing bodies and state agencies, compared to a national average of 42%. This trend reduces opportunities for private homeownership and pushes more people into the already strained rental market.

Other factors worsening the crisis include the state’s continued reliance on private developers, reduced direct construction of social housing, and ongoing engagement with landlords and builders. The result is a growing squeeze on low- and middle-income workers, £hindering employers’ ability to attract and retain staff and increasing wage demands to keep up with the rising cost of living.

Beyond housing, the report also notes positive trends. Regional employment reached a record 279,000 with a low unemployment rate of 3.4%. Apprenticeships rose to 2,500, and international students grew by over 18% since 2021.

However, the region’s economic resilience is threatened by its overreliance on manufacturing, which accounts for nearly half of its €31.4 billion Gross Value Added, making it vulnerable to sector-specific shocks.