The Social Democrats have unveiled a proposal to create a State Construction Company aimed at delivering homes at the scale needed to address Ireland's escalating housing crisis.

Under the party's plan, the new company would operate alongside the private market, with a strong emphasis on expanding the supply of affordable and social housing.

Speaking at the launch, Social Democrats housing spokesperson Rory Hearne TD said: "The State must become a direct developer and builder of homes to solve the housing emergency. This would bring additional stability to the sector, with permanent public capacity to deliver housing.

"The Social Democrats want the State and not-for-profit housing sector to directly deliver housing on a massive scale through a historic programme of social and affordable home building. This is what was done in Ireland in the past by local authorities and the National Building Agency – and there is no reason why it can't be done again.

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"Without such direct delivery, the radical reset in housing policy required to solve this emergency will not be achieved.

"While private developers and builders will still have a role in housing delivery under our proposal, it is clear that the total reliance on this model under Fianna Fáil/Fine Gael-led governments has failed to deliver affordable homes at the scale needed.

"Just as we do not leave it exclusively up to the private for-profit health providers to care for our citizens, or private schools to educate our children, we should not take a laissez faire approach to housing.

"Ireland's housing disaster is worsening by the day. Our proposal would be a gamechanger after decades of failed housing policy by successive governments."

Dr Tom McDonnell, co-director of the Nevin Economic Research Institute and a guest speaker at the launch, said: "The Social Democrats' proposal makes sense for a number of reasons. A State Construction Company can prevent the boom/bust cycle that has plagued us for decades. In addition, a State builder could reduce costs by eliminating profit margins, bulk purchasing, use of standardised designs, economies of scale and lower staff turnover costs."

According to the party, the State Construction Company would:

- Deliver 5,000 homes within three years, before scaling up output thereafter.

- Directly employ a full range of construction skills, including engineers, surveyors, block layers, scaffolders, carpenters, plumbers, electricians, fitters and construction project managers.

- Provide secure, quality employment and apprenticeships to attract more workers into the sector.

- Establish four regional modular housing factories to boost supply using Modern Methods of Construction (MMC).

- Work with local authorities and Approved Housing Bodies (AHBs) to significantly increase new home delivery towards national targets.