Couples on €107k can only afford homes in one of five counties

The report from the Society of Chartered Surveyors of Ireland (SCSI) examined the affordability of new suburban homes in Cork, Galway, Meath, Kildare and Wicklow. Picture: Denis Scannell

The dream of owning a standard three-bed home in Ireland is moving further out of reach of the average Irish couple, even for those who have saved a deposit and availed of Government support schemes.

A sample garda and nurse with 10 years of service on a combined income of €107,000 could only afford to buy in one out of five counties analysed by Ireland’s estate agents and chartered surveyors.

The report from the Society of Chartered Surveyors of Ireland (SCSI) examined the affordability of new suburban homes in Cork, Galway, Meath, Kildare and Wicklow. 

They found a couple wishing to buy a new three-bed semi-detached home who have the 10% deposit and availed of the Help to Buy relief could only afford to buy in Meath and only then with the support of the First Home Scheme.

Buyers in Cork and Galway still faced further shortfalls of almost €13,000 and €8,000 respectively, which could be reached with savings. However, buyers were completely priced out of Kildare and Wicklow, with shortfalls of €65,000 and €78,000.

The SCSI report also found the affordability gap was widening despite the increasing number of home completions. 

“Last year our case study ‘couple’ could buy in three locations without the support of the First Home Scheme (FHS). This year, a new home is only affordable in one and that is with FHS support, so the widening affordability gap is a real concern,” SCSI vice-president Gerard O’Toole said.

“While buyers with  savings should be able to overcome the gap in Meath, Galway and Cork, new three-bed homes in Wicklow and Kildare remain totally out of reach for people on these salaries. In addition, there are thousands of people on lower salaries who will not be able to buy and will require support.” 

The report examined the affordability of a two-bed terraced house in all five locations, with the affordability gap met in four locations without recourse to FHS, while in Wicklow it was met with the support of FHS.

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Data from the Central Statistics Office (CSO) show there were 32,695 new homes completed last year, a 10% increase on 2022. The CSO also said property prices nationally have increased by 144.5% from their trough in early 2013.

However, home prices have remained elevated and continue to increase. The SCSI also surveyed its estate agent members, who gave a pessimistic outlook on the property market for new buyers.

They expect property prices to rise by 4.5% over the next year. This is up on the 1% increase which SCSI agents forecast for 2024 back in January.

Mr O’Toole said the clear message from the report was the urgent need to increase supply.

“Seventy-five per cent of agents reported low stock levels, up from 71% some 12 months ago, highlighting the ongoing issue of insufficient supply. A year ago, 35% of agents identified the lack of supply as the main issue for the price movements, now that number is 46%.”