MMC adoption drives sharp rise in housing commencements at end of 2025
Seven in ten scheme homes and over 40% of apartments set to use modern construction methods as December starts double month on month
15 January 2026 | đŸ“§Â editor@breakingground.news
Modern Methods of Construction (MMC) are emerging as a strong driver of housing delivery, with latest government commencement data showing a sharp increase in housing starts at the end of 2025 alongside high intended uptake of offsite and accelerated build techniques.
The Department of Housing, Local Government and Heritage has published commencement data for December 2025 showing that 3,065 new homes were started during the month, more than double the 1,533 units commenced in November. December represents the strongest month for commencements in 2025, well ahead of the previous high of 1,656 units recorded in September.
For the first time, the Department has also published data on the intended use of MMC within commencements. The figures show that from July to December 2025, MMC is planned for 69% of homes in scheme developments, with timber frame accounting for 61% of those units. In the apartment sector, 44% of new homes commenced during the period intend to use MMC. These methods can reduce construction timelines by up to 40% compared with traditional build approaches.
The December spike in commencements aligns with wider indicators of improving construction activity. AIB’s Purchasing Managers’ Index for December showed a return to growth in new orders, supported by rising client demand, increased staffing levels and a more optimistic outlook among firms heading into 2026.
Across the full year, 16,412 homes were commenced in 2025. While this was below the 2024 total, when measures such as the development levy waiver and the Uisce Éireann rebate accelerated project starts, the combined performance across 2024 and 2025 shows a stronger underlying trend. A total of 85,723 units were commenced over the two years, a 43% increase on the combined total for 2022 and 2023. Over the five-year period from 2021 to 2025, commencements reached 176,206 homes.
The December data also highlights the composition of new starts. Of the 3,065 units commenced, 1,820 units, or 59%, were apartments. Scheme houses accounted for 979 units, representing 32%, while one-off housing made up the remaining 266 units, or 9%.
The increased visibility of MMC in commencement data reflects a wider policy push under the Government’s Housing Action Plan, Delivering Homes, Building Communities 2025–2030. The plan commits to accelerating MMC adoption, including support for 3D volumetric construction through pathfinder projects such as the SMART Homes initiative in Limerick and a volumetric housing pilot in Wexford.
MMC has already been embedded within public delivery programmes. Under the Local Authority Accelerated Delivery Programme, all homes are being delivered using MMC, primarily timber frame, with more than 1,500 dwellings planned across 13 local authorities. The Department notes that MMC offers greater cost certainty, reduced construction risk and lower embodied emissions alongside faster delivery.
The new MMC reporting is based on commencement notice data submitted through the Building Control Management System and was developed by a steering group including the Department of Housing, the National Building Control and Market Surveillance Office, the Department of the Taoiseach and the Central Statistics Office.
With commencements strengthening at the end of 2025 and MMC adoption now measurable at scale, the data points to a housing delivery model increasingly reliant on faster, more industrialised construction methods as Ireland seeks to meet its target of 300,000 new homes by 2030.
