Cork first-time buyers need to earn almost double the median income to afford a home

Families in Cork need to earn €92k to borrow enough to buy a first home — €45k more than the county’s median income 

The Chill Insurance report shows that nobody in Ireland on the median wage can borrow enough to buy a typical first-time home — and households in three counties require a six-figure income to buy. Picture: iStock 

Households in three counties in Ireland now require a six-figure income to buy a typical first-time-buyer home, with Cork being the only county outside of greater Dublin where an income of over €90,000 is required, new research shows.

The research, from Chill Insurance, shows there is no county in the country where a single buyer on the national median salary of €44,816 would be able to borrow enough to afford a home. Even in Longford, the most affordable county in the analysis, a single buyer would need €48,375.

To buy in Dublin, a household would need a combined €108,000 in earnings a year, in Wicklow it is €101,000, and in Kildare it is €100,000. Meath is slightly cheaper at €96,000.

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.

Buyers in greater Dublin, Cork, and Galway need around twice the local median wage 

“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.”

First-time buyers in Cork need to earn €92,092 to borrow enough to buy a home. That is €45,676 more than the county’s median income of €46,416.

Cork has the highest income requirement in the south of the country.

Director of sales and operations at Chill Insurance Ian O’Reilly said that, 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.”

Connacht and Ulster most affordable

Connacht and Ulster account for most of the more affordable areas, alongside Longford. In Leitrim and Mayo, a salary below €58,000 could be enough to borrow the amount needed.

Connacht and Ulster account for most of the more affordable areas, alongside Longford. 

In counties such as Longford, Leitrim and Mayo, a salary below €58,000 could be enough to borrow the amount needed.