Counties where couples earning €100,000-plus would struggle to afford home

Sunday World

6 days ago

Supply problems mean property prices are likely to keep soaring
There is also little sign of any easing in affordability pressures.
A majority of estate agents who are members of the Society of Chartered Surveyors Ireland (SCSI) expect property prices nationally to increase by an average of 5pc over the next 12 months.
The SCSI said calculations it has done show that a garda and a nurse couple on a €107,000 combined salary will only be able to buy in one of five locations it examined.
The imagined couple want to buy an averagely priced new three-bed semi-­detached home. They are assumed to have the 10pc deposit.
They will be unable to buy in Meath, Kildare, Wicklow and Galway.
Cork was the only area a couple on such a salary could afford to buy.
In the two most expensive counties, Wicklow and Kildare, the couple will face significant shortfalls.
The deficit is €65,000 in Wicklow and €22,000 in Kildare for a three-bed home.
And this is despite the couple availing of the State's Help-to-Buy scheme, which can see new buyers getting up to €30,000 to put towards the purchase of a home.
Estate agents who are members of the SCSI said this shows the ­affordability gap for ordinary couples seeking to buy their first home.
SCSI president Gerard O'Toole said the scenarios his organisation worked out show affordability has become more challenging across various house types and locations.
'While a new three-bedroom semi-­detached home is affordable in Cork, and buyers with additional savings beyond the 10pc loan-to-income limit should be able to overcome the gap in Meath and Galway, new three-bedroom semi-­detached homes in Wicklow and Kildare remain totally out of reach for people on these salaries,' he said.
These findings highlight the persistent structural barrier which exists to homeownership
'In addition, there are thousands of people on lower salaries who will not be able to buy and will require support.'
Mr O'Toole said calculations for two- and three-bed terraced houses in the same five locations show affordability being met in nearly all locations. ­However, the couple would require some additional savings in Kildare and Wicklow in order to buy a three-bed terraced home.
'These findings highlight the persistent structural barrier which exists to homeownership, even for dual-­income households in stable public sector roles,' Mr O'Toole said.
'It also underscores broader concerns around housing sustainability, increasing commuter burdens and the potential impact on quality of life.'
Property prices are continuing to surge. Photo: Stock image
According to the latest SCSI 'Residential Mid-Year Market Monitor' report, over half of agents believe the key factor influencing house prices over the next 12 months will continue be the lack of supply of new housing.
A majority of estate agents believe current residential property prices are expensive or very expensive.
When asked where they believe we are in the market cycle, 60pc of respondents believe prices are increasing but will level off soon. Some 18pc believe they have peaked and should start to decline.
The SCSI report found 70pc of agents are reporting low stock levels of new and second-hand homes.
'Over the past five years, more than half of agents have consistently highlighted low stock levels, stressing that constrained supply remains a fundamental issue impacting the market,' the report said.