The State’s €450 million scheme that aimed to subsidise the construction of 5,000 apartments for sale to owner-occupiers is tracking in advance of budget, with €320 million already committed towards 2,662 homes.The Croí Cónaithe (Cities) scheme was launched in 2022 to bridge the gap between how much it costs developers to build an apartment and the price owner-occupiers can afford to pay for apartments.The €450 million scheme aimed to activate the delivery of 5,000 apartments for sale to owner-occupiers by 2026, which would equate to an average subsidy of €90,000 required for each apartment. New figures, provided by Minister for Housing James Browne in response to a parliamentary question from Sinn Féin’s Eoin Ó Broin, have shown that the 2,662 apartments approved under the scheme have required an average subsidy of €120,000 each. The higher rate of subsidies required has resulted in €321.1 million, or 71 per cent of the total Croí Cónaithe (Cities) budget, being used up for close to half the apartments promised as part of the scheme.Browne told The Irish Times the scheme has helped stimulate the supply of new homes that would not have been built due to “viability challenges”.“The Croí Conaithe scheme has genuinely been a catalyst in activating much‑needed housing and giving people the opportunity to buy a home of their own. I am driving on with boosting the supply of apartments for sale and it’s going in the right direction. There’s clearly momentum here now because of this intervention.”Ó Broin said data from the Department of Housing has confirmed the scheme is “chronically underperforming while costing more per home than originally anticipated”. Inflation in apartment construction has made many planned residential schemes unviable for developers to build because the cost to deliver the homes is more than what the homeowner market can afford.Last year, department research showed the cost to develop an apartment in Dublin city increased by 2 per cent to €605,000, while the price of a suburban apartment rose by 2 per cent to €559,000.It also showed the cost to build an apartment in either urban or suburban areas of Cork, Galway and Limerick costs between €509,000 and €538,000.People who buy apartments through Croí Cónaithe can also avail of further Government support like Help To Buy and the First Home Scheme, under which the State provides up to 30 per cent of the market value of a home to a buyer.Will a Middle East peace deal make any difference to inflation? Listen | 32:03Ó Broin said if a homeowner availed of these supports in addition to the Croí Cónaithe subsidy, the State would have covered half of the total development cost of an apartment costing €440,000.“The Government’s so-called affordable housing schemes are broken and throwing ever more money at inflationary demand side subsidies to fill the gap is the wrong approach,” said Ó Broin.The department data showed there are 2,662 apartments spread across 21 developments being funded through Croí Cónaithe, which have been approved through four separate phases.Developers utilising the scheme include Park Developments for its Clay Farm project in Dublin 18, Glenveagh Properties for its Blackrock Villas development in Cork, Cairn Homes for Mercer Vale in Dublin 18, and Evara for an apartment block in Cherrywood in Dublin.Last year, the Housing Agency, which manages Croí Cónaithe, received applications from developers to build close to 6,000 homes through the scheme.