The Housing System And The Celtic Tiger: The State Response To A Housing Crisis Of Affordability And Access

The exceptional economic growth in the Republic of Ireland in the 1990s, which has led to Ireland's description as the 'Celtic Tiger', has been paralleled by rapidly rising house prices, increased waiting lists for social housing provision, rapidly rising rent levels in the largely unregulated private rented sector and subsequent increases in homelessness throughout the 1990s. Consequently Ireland has a crisis of housing affordability and access for many households on low to average incomes or benefit dependent. This paper sets the context for economic growth in Ireland, and then examines how the lack of planning for housing provision in a period of sustained economic growth has assisted in creating the current housing crisis. Particular focus is paid to the State's response to the housing crisis from 1997 to 2000 when a plethora of fiscal steps were taken in relation to the housing market which fuelled the boom further. These fiscal policies are examined in light of the impact of Ireland's entry into Economic and Monetary Union (EMU) and the Irish political environment which leads government to take short-term populist steps, which quickly cause further house price increases. The State response to the demand for affordable accommodation is also examined and questions are raised regarding the approach and the ability to deliver the required housing. Overall the lack of coherent understanding of the operation of the Irish housing system by the State, calls into question how long economic growth can continue whilst Irish housing creaks under the strain across all tenures.