Single Cork buyer now needs €92,000 salary to own first home
'In Cork, a single buyer earning the local median income would still not earn enough to borrow what they need for a typical first home.' Stock picture
A single first-time buyer in Cork now needs an annual income of more than €92,000 to purchase a typical starter home, according to new research.
The analysis found that a buyer would need to earn €92,092 to afford the median first-time buyer property in the county — almost double Cork's median income of €46,416.
It means the average earner falls €45,676 short of the income needed to buy a first home.
Cork is the only county outside Dublin and its commuter belt where a single first-time buyer would need a salary above €90,000.
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The research, carried out by Chill Insurance, compared median first-time buyer property prices from the CSO's Residential Property Price Index with median local income data from the statistics office.
These figures were then assessed against the standard Central Bank lending rules, under which a buyer can borrow up to 90% of a home's value and up to four times their gross income.
Economist Austin Hughes said the report “emphasises the nationwide nature of the problem would-be homebuyers face.
“Even allowing for ongoing wage growth, in no county is the typical first-time buyer property accessible at present to the median wage-earner, unless they are in a position to get additional financial support from the State and/or their family," he said.
“With would-be buyers in Dublin and surrounding counties now needing around twice the typical wage in those areas, and approaching that in Cork and Galway, this 'purchase gap' is growing and spreading in a worrisome manner.”
No county in Ireland is affordable for a single first-time buyer earning the national median salary.
A buyer earning the median salary of €44,816 would be unable to borrow enough to purchase a typical first home in any county in the State.
Dublin remains the least affordable county, with a single buyer needing an income of €108,000. While it was the only county above the €100,000 threshold a year ago, Wicklow and Kildare have now joined it.
Meath follows at €96,750, ahead of Cork at €92,092, making it the only county outside Leinster in the top five.
The remainder of the top 10 comprises Louth, Galway, Laois, Limerick, and Kilkenny.
A first-time buyer earning the national median salary of €44,816 would not earn enough to borrow what they need for a typical first home in any county in Ireland.
Even in Longford, the most affordable county in the analysis, a single buyer would require an income of €48,375.
The majority of counties in the bottom 10 are in Connacht and Ulster: Leitrim, Donegal, Mayo, Roscommon, Cavan, and Monaghan all follow Longford in terms of affordability.
There are two Munster counties in the top ten: Tipperary, where a salary of €67,065 is needed, and Kerry where the figure is €67,725.
Ian O'Reilly of Chill Insurance said: “In Cork, a single buyer earning the local median income would still not earn enough to borrow what they need for a typical first home.
“For many first-time buyers, closing that gap means saving a larger deposit, buying with another person or looking at State supports such as the First Home Scheme or the Local Authority Home Loan.”
