Stark financial reality of Irish housing crisis as price inflation hits 10-year high & Govt urged ‘to address failure'
HOUSE price inflation has soared to its highest in ten years.
The House Price Report from
The typical price of a house around the country was found to be €357,851, 12.3 per cent higher than at this time last year and 40 per cent higher than at the beginning of the
In
In both
The rate of inflation in Waterford city is 15.2 per cent, while the same figures are lower in
Read more in Property
The average cost of a home in Dublin was €467,913, while in Galway city it was €426,348 and in Cork it was €369,938.
The current market
And while the Government has boosted its homebuilding target this year, Housing Minister James Browne said last week that the aim of 41,000 is 'not realistic'.
Trinity College economist and author of the report Ronan Lyons said it is time for the Government to step in and create a plan for producing more homes.
Most read in The Irish Sun
He explained: 'The fastest increase in housing prices since mortgage market rules were introduced a decade ago highlights the importance of addressing Ireland's chronic housing shortage.
'The substantial increases over the past year in almost all parts of the country are linked to the lack of second-hand supply.
SECOND-HAND SUPPLY ISSUE
'This in turn is related to the increase in interest rates earlier in the decade.
'As interest rates come down and mortgage-holders come off their fixed rate terms, the picture for second-hand supply will improve.
'There are already some tentative signs in Dublin of an increase in second-hand supply. Nonetheless, the second-hand market is only part of the solution.'
He added: 'Policymakers have to address their failure to recognise and provide the framework for enough new homes each year.'
1
House price inflation has soared to its highest in ten years
Credit: Getty
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Irish Examiner
33 minutes ago
- Irish Examiner
Simon Harris 'remains to be convinced' on tax breaks for developers
The Tánaiste "remains to be convinced" that tax breaks for developers will help increase the supply of new homes. Speaking in Brussels, Mr Harris said the Government would take a number of other steps to address viability in the construction sector in the coming weeks. "When I talk to people who are in the industry, and indeed, when I talk to many people who just want a home in Ireland in what is a housing emergency, I think the most important thing is that we get the viability measures right," he said. "There's a range of ways you can make construction more viable, particularly apartments more viable. I think we've taken some of those steps already, providing clarity and certainty around the RPZs [rent pressure zones], the planning permissions extensions, the exempted development changes we're going to make." Asked about possible tax breaks for builders, Mr Harris referenced a Sunday Business Post interview with Ballymore founder Sean Mulryan, who dismissed the idea such incentives could be a solution to Ireland's housing crisis. Mr Harris said: "I think the next big move we need to make on viability will be next month in the National Development Plan, where we will look at how we can better fund and faster delivery around water and wastewater — these are some of the big blocks. "So we look at viability all of the time. I remain to be convinced that tax is the most effective tool, but there are definitely more measures we need to take on viability." Mr Mulryan said tax reliefs were 'not the answer', amid a debate in Government and across the industry over the prospect of a return to Celtic-Tiger-style incentives for big builders.
Irish Independent
an hour ago
- Irish Independent
Mayo records notable house price increases amid ‘very low supply'
According to the latest House Price Report, the average house price in Mayo in Q2 of 2025 stood at €234,406. This is 52.3pc higher than pre-Covid prices and 4.1pc higher than the previous quarter. Every house type in Mayo recorded an increase in prices. Most notable was the price of a one-bedroom apartment, which jumped from 23.4pc to €102,000. This comes amid a nationwide annual increase in house prices. County Laois recorded the biggest annual increase, rising 16.6pc to €284,031 while Monaghan rose 2.2 pc to €245,222. Dr Ronan Lyons, author of the House Price Report, said the housing market was 'starved of supply' at present. 'The underlying reason is largely unchanged. There are simply too few homes on the market at the moment,' he said. Today (Monday, June 23) there are 868 properties in Mayo listed for sale on Elsewhere, the Real Estate Alliance (REA) has found that the average price of a second-hand three-bed semi-detached house in Mayo has increased to €265,000. This represents a 8.2pc increase in just three months – the highest increase of any area recorded during that period. According to the Q2 REA Average House Price Index, the average time taken to sell a property has increased by one week to a total of five. 'We are experiencing very low supply, with a total of just seven properties sold in Castlebar in this quarter,' said Robert McGreal of REA McGreal Burke. 'There are eleven properties on market currently with an average of €265,000 as well.' ADVERTISEMENT The survey shows that across the county, 50pc of purchasers were first-time buyers. A 20pc of sales in Mayo this quarter were attributed to landlords leaving the market. Additionally, agents across the county reported that the BER ratings of properties saw A-rated properties command 28pc price increases in comparison to comparable C-rated properties. Castlebar-based auctioneer Kevin Beirne told the Irish Independent that new building regulations were contributing to house price inflation. 'There is such a different now between a modern new home with all the building regulations and the energy efficiency of them, that's why there is such a difference in the price. Building materials and triple-glazed windows and all that are longer lasting,' he said.
Dublin Live
an hour ago
- Dublin Live
Housing price inflation hits 10-year high, according to new report
Our community members are treated to special offers, promotions and adverts from us and our partners. You can check out at any time. More info Housing price inflation has hit a 10-year high, according to a property website. Prices rose by an average of 3% across Ireland during the second quarter of 2025, House Price Report released on Monday said. The typical listed price nationwide in the second quarter of the year was €357,851, 12.3% higher than a year previously and 40% higher than at the onset of the Covid-19 pandemic. The current rate of inflation in the market is the highest seen in the 10 years since mortgage market rules were introduced. The surge in Dublin of 12.3% is in line with the average for the rest of the country, whereas in the rest of Leinster, the annual increase in prices is 14.3%. Inflation is also close to the national average in both Limerick city (12.8%) and Galway city (12.5%). In Waterford city, the rate is 15.2%, while in Cork city the increase in prices is slower, at 8.6%. The average list price in Dublin is €467,913, €369,938 in Cork city and €426,348 in Galway City. Ireland's limited supply of homes, due to stalled construction during the recession, is blamed for now skyrocketing house prices. The Government has boosted its target for the homes it aims to build as a result, despite missing its target last year and the housing minister stating this year's target of 41,000 is 'not realistic'. The number of second-hand homes available to buy nationwide on June 1 was close to 12,100. This is largely unchanged from the figure a year ago and less than half the pre-Covid average of almost 25,000. Author of the report Ronan Lyons, an economist at Trinity College Dublin, said it was up to policymakers to solve the housing shortage. 'The fastest increase in housing prices since mortgage market rules were introduced a decade ago highlights the importance of addressing Ireland's chronic and worsening housing shortage. The substantial increases over the past year in almost all parts of the country are linked to the lack of second-hand supply. This in turn is related to the increase in interest rates earlier in the decade. 'As interest rates come down and mortgage-holders come off their fixed rate terms, the picture for second-hand supply will improve. There are already some tentative signs in Dublin of an increase in second-hand supply. Nonetheless, the second-hand market is only part of the solution. 'Ultimately, policymakers have to address their failure to recognise and provide the framework for enough new homes each year.' Join our Dublin Live breaking news service on WhatsApp. Click this link to receive your daily dose of Dublin Live content. We also treat our community members to special offers, promotions, and adverts from us and our partners. If you don't like our community, you can check out any time you like. If you're curious, you can read our Privacy Notice . For all the latest news from Dublin and surrounding areas visit our homepage.
