Why couples on €100k can't afford vast bulk of three-bedroom semi-Ds

Extra.ie​

4 days ago

Property prices are now so high that a couple on a combined income of more than €100,000 will only be able to afford an average-priced new three-bed semi in one of five locations nationwide, a new housing report shows.
The couple also need a minimum 10% deposit under the Central Bank's lending rules.
Adding to the burden, estate agents expect prices to increase by an average of 5% over the next 12 months.
Up to 70% of agents report that low supply is the main driver of house price inflation. Some 60% believe prices are increasing but will level off soon, while another 18% believe they have peaked. Fianna Fáil leader Micheál Martin and Fine Gael leader Simon Harris. Pic: Sasko Lazarov/RollingNews.ie
Some 88% of estate agents describe current residential property prices as 'expensive' or 'very expensive' – that's up from 83% in January.
The Society of Chartered Surveyors Ireland (SCSI) Residential Mid-Year Market Monitor 2025 report highlights that affordability challenges have intensified for first-time buyers.
The average typical listed price for a three-bed semi in the first six months of this year is €357,850, 12.3% higher than a year previously and 40% higher than at the onset of Covid.
In the most expensive counties outside Dublin, a couple will face a shortfall of €65,200 in Wicklow and €22,000 in Kildare for that house type.
The current rate of inflation in the market is the highest seen in the decade since mortgage market rules were introduced. The surge in inflation is relatively broadly based, with the Dublin figure of 12.3% in line with the average for the rest of the country, according to the latest Daft.ie House Price Report.
In the rest of Leinster, the annual increase in prices is 14.3%, whereas inflation is close to the national average in both Limerick city at 12.8% and Galway city at 12.5%.
In Waterford city, the rate is higher again at 15.2%, while in Cork city the increase in prices is slower, at 8.6%. Areas around the country highlighted by the report show that prices in Dublin stand at €467,913, up 12.3%.
A Galway city average house costs €426,348, which is up 12.5%, followed by Cork city at €369,938 – up 8.6%. Limerick city stands at €311,086 – up 12.8%. The rest of the country has average house costs reaching €309,954 which is up 12.5%. Pic: Shutterstock
SCSI president Gerard O'Toole said the report indicated mounting concern over the supply of housing and a recent slowdown in home-building.
He said a total of '51% of agents in our survey cite lack of supply as the main factor driving price inflation, up from 46% a year ago.
'In 2023, the figure was 35%, so we can really see the impact the lack of supply is having on house prices. At the same time, 70% of agents are reporting low stock levels of new and second-hand homes, again underscoring the persistent challenge of limited supply in the market.
'Over the past five years more than half of agents have consistently highlighted low stock levels, stressing that constrained supply remains a fundamental issue affecting the market,' he added.
'With the ESRI forecasting that 37,000 new homes will be built this year, well short of the Government's target of 41,000, the urgent need to address infrastructural shortcomings and for the Housing Activation Office to become fully operational as soon as possible can't be overstated.
'The other main factors, which 20% of our members believe are influencing price movements, include the state of the economy.
'A further 16% said the continued availability of Government support schemes such as Help to Buy and First Home Scheme are influencing house prices.
'We have had 12 years of continuous price growth and the level of increases we have seen in recent years is just not sustainable.
'In the medium to long term, the only way to ensure prices stabilise is to ramp up supply,' Mr O'Toole said.