Young Irish people say they’re being forced to emigrate as rents sore 82% in Ireland since 2010 – – Our News, Your Views

Young Irish people say they’re being forced to emigrate as rents sore 82% in Ireland since 2010

Median incomes in Ireland have risen by more than 82% in the last 12 years, compared to the EU average of 18%, according to data published by the Irish Banking and Payments Federation.

In its latest Housing Market Monitor for the third quarter of this year, BPFI said that the population is growing much faster than we are building houses to house people.

The population increased by more than half a million people between 2011 and 2022, while housing production grew by only 130,000.

The BPFI also said that while there was a significant increase in new homes on the market in 2022, we are now seeing a decline in new build start numbers.

It noted that data on new home starts in the first nine months of 2022 was 5.4 percent higher than the same period in 2019.

But that activity appears to be declining year-over-year after peaking at 35,000 units during the first quarter of 2022 to around 26,600 units in October.

BPFI Chief Executive Brian Hayes said the significant gap that currently exists between average rentals and mortgage payments, coupled with significant latent demand, will likely offset any negative impact on demand for short-term home loans that it will probably continue to affect house prices unless we see a substantial increase in supply.

He noted that the average monthly mortgage payment for first-time buyers was just over €1,000 for the first half of 2021 compared to the average monthly rent of over €1,400 across the country, with a significantly larger gap in Dublin.

“While in the short-term mortgage demand may be impacted by the cost-of-living crisis and general economic uncertainly, this may well be offset by factors such as pent-up demand and high rental costs which will sustain home buying demand into the future resulting in price pressures, albeit at a lower level, unless supply increases substantially,” Mr Hayes added, reports RTE.

Speaking to RTÉ’s Morning Ireland, Hayes said “massive saving” was taking place in the economy and one of the reasons house price inflation rose so significantly post-Covid was because of the cumulative level of deposits that were there, “they were adding and fuelling house price inflation”.

He said that the average rental price is around 1,400 euros, while the average mortgage is around 1,000 euros nationwide.

He added that unless the focus on increasing supply levels remains, we will fail to moderate house price inflation.

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