Ireland’s housing crisis shows little sign of easing, as new figures reveal that property prices are rising at their fastest rate in a decade. According to the latest Sales Report from Daft.ie, the average listed price of a home nationally rose by 12.3% in the year to March — the highest annual increase since early 2015, when surging prices prompted the Central Bank to introduce tighter mortgage rules.
Unlike the 2015 spike, which was concentrated in Dublin and other urban centres, the current inflation appears far more widespread. Double-digit price growth has been recorded in nearly all regions, with only Connacht-Ulster registering a slightly lower figure at 8.8%. In Dublin, price inflation is now in line with the national average at 12.3%, marking a significant change from past trends.
The underlying cause remains a chronic shortage of housing. Both new builds and second-hand home sales remain well below pre-pandemic levels. In the 12 months to June 1st, just over 51,000 second-hand homes were listed for sale, a sharp decline from the nearly 67,000 listed in 2019. While the pandemic initially disrupted supply, with only 45,000 homes listed in the year to March 2021, the market has failed to return to pre-Covid norms.
Compounding the issue, recent interest rate hikes have dampened market activity. While many homeowners locked in fixed rates in anticipation of rate rises, the result has been decreased mobility in the market. In 2024, just 50,000 homes were listed for sale, bringing the market closer to pandemic-era lows than the healthier levels seen before Covid.
Prices have surged as a result. Nationally, property prices are now 40% higher than at the start of the pandemic, with some areas experiencing increases of more than 60%.
However, there are signs that pressure may be starting to ease — at least in the capital. In Dublin, the volume of second-hand homes listed for sale actually rose by 3% over the past year, bucking the downward trend seen elsewhere. The number of homes available on the market in Dublin as of June 1st was also nearly 10% higher than the same date last year.
In the housing market, increases in supply often precede slower price growth, raising hopes that Dublin may soon see a moderation in price inflation. And as more homeowners reach the end of their fixed-rate mortgage terms, similar trends could emerge in other regions.
Despite these tentative improvements, the market remains severely undersupplied. While the total number of homes for sale nationwide rose to just over 12,000 in June that's up from 9,300 in March. This still falls well short of the estimated 30,000 needed for a balanced market.
For now, Ireland’s housing market continues to be defined by a mismatch between supply and demand and the pressure that brings to bear on prices.
