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Residential property prices continued to climb throughout last year, with new data showing that average asking prices nationally rose by 5.5%. The latest report from Daft.ie highlights that listed prices are now only around 10% below their peak during the Celtic Tiger period.

By the final quarter of the year, the average asking price for a three-bedroom semi-detached home had reached slightly over €423,000. According to Ronan Lyons, who authored the report, there is no evidence to suggest that upward pressure on prices is easing.

He pointed out that demand in the housing market continues to exceed supply by a significant margin, based on both asking prices and completed sales. While there has been a marginal slowdown in the rate of price growth compared with the previous year, and a small improvement in the availability of second-hand homes, the underlying imbalance remains firmly in place. This marks the twelfth consecutive year of rising prices, with supply levels since the pandemic remaining well below historical norms.

The report argues that the core issue remains unchanged. Ireland’s current level of housing delivery, estimated at between 30,000 and 35,000 homes annually, falls short of what is required. To restore balance, overall output across owner-occupied, social and rental housing would need to increase substantially, so that housing supply reflects societal needs rather than forcing households to adapt to scarcity.

Regional differences remain pronounced. Dublin recorded the lowest annual rate of price inflation at 3.1%, while prices in Connacht-Ulster increased by 11.6% over the same period. Nationally, asking prices are now 41% higher than pre-pandemic levels. In Dublin, the average listed price has reached €611,000.

Mr Lyons warned that sustained conditions of high prices and limited supply risk deepening income and wealth segregation. At current price levels in the capital, home ownership is largely confined to higher-income, dual-earner households, a pattern he believes poses long-term risks for the social and economic fabric of the city. While remote working has allowed some buyers to consider locations further from their workplace, he stressed that access to housing close to family, employment and social networks should not depend on income bracket or inherited wealth.

The data also reinforces that supply shortages remain the dominant driver of price growth. At the start of December, there were only 11,551 second-hand homes available for sale nationwide. Although this represented a year-on-year increase of 7%, availability remains well below the 2015 to 2019 average of approximately 26,000 homes. The shortfall is more severe outside Dublin, where supply is 63% below late-2010s levels, compared with a 16% gap in the capital.

Political concerns have also intensified. Eoin Ó Broin of Sinn Féin has said that many younger people increasingly believe home ownership in Ireland is beyond reach. He described this outlook as unacceptable and criticised current housing policy for failing to deliver sufficient affordable and social homes.

Mr Ó Broin argued that the housing crisis is solvable through the delivery of the right types of homes, in appropriate locations, and at prices people can realistically afford. He has indicated that his party intends to continue pressing the issue of affordability when the Dáil returns, calling for a fundamental shift in housing policy to address what he sees as a lack of ambition in current strategies.

Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.