Housing in Ireland has become “severely unaffordable” in Ireland, especially for young people according to a new report.
In fact, the report by Parliamentary Budget Office showed that 36% of people aged 25-29 lived with their parents in 2020.
Between 2012 and 2020, house prices nationally increased by a whopping 77%.
However, in the same time the national average wages only increasing by 23% in that same time frame.
“This has all culminated in the deterioration of Irish homeownership from 77% in 2007 to 68.7% in 2020,” the Parliamentary Budget Office said.
“The high cost of housing can lead to deprivation, exclusion, and poverty at the household level and to lower levels of consumption and economic growth at the national level.”
Minister for Housing Darragh O’Brien said in October that he is hopeful the rise in house prices will “level off” in 2022.
“I hope to see this level off and we’re seeing some slowdown in the acceleration of house price increases already,” O’Brien said.
“Supply will increase substantially next year and I hope we would see a requisite tapering off of the level of increases that we’re seeing.
“There is no doubt that the restricted market that we have there and restricted supply, particularly over the last two years with Covid, has had a real impact,” O’Brien continued.
“What we need to see is more supply, frankly. And the indicators for next year are good.”
