ESRI: Renters in Ireland face 'significant' challenges compared to the rest of Europe

Think tank says renters and people trying to enter the housing market in Ireland face 'some of the most significant' affordability and availability challenges in Europe

The ESRI found that Irish government rent supports helped people on lower incomes cope with price pressures while middle earners continue to be squeezed. File picture: Yui Mok/PA

A Europe-wide report on housing affordability showed middle and higher income renters in Ireland face significant costs compared with other countries.

The report by the Economic and Social Research Institute found that government rent supports have helped lower income earners in Ireland cope with ongoing cost pressures while middle earners continue to be squeezed.

These supports contributed to a more positive overview of Ireland’s affordability levels in the rental market.

However, middle-income and higher-income renters face rent-to-income ratios that are on average two to three percentage points higher than elsewhere in Europe.

The think tank also said that Ireland faces “some of the most significant” affordability and availability challenges in Europe for renters and homeowners trying to enter the housing market.

Between 2015 and 2019, Ireland saw the largest rise young adults aged 25-34 living in their family home.

In addition, Ireland recorded one of the lowest levels of homeownership among single people under 40.

However, the country has the fourth highest rate of homeownership among households aged over 40 across the 15 countries included in the report.

“While Ireland is not unique in seeing falling homeownership rates over time, it does have one of the biggest gaps in ownership rates between younger and older generations,” the report said.