John Fahey: Growth in house prices and rents likely to slow despite continuing shortages     

Higher building costs, shortages in relation to workers, increased uncertainty regarding the economic outlook, availability of funding, and delays in the planning process are all major headwinds impacting the level of future supply

A shortfall in housing supply will continue to be the defining characteristic of the Irish residential property market in 2023

The Irish residential property market has been characterised by marked upward pressure on prices and rents over the past couple of years. However, there have been signs in the autumn that the sharp rate of increase in house prices and rents is moderating. 

The year-on-year growth rate provides evidence of a deceleration in house price inflation, albeit while still remaining at an elevated level. In October, the annual growth rate slowed to 9.8% from 10.7%, which compares with a peak of 15% in the early part of 2022.