Affordability crisis drives young buyers towards social housing, says PTSB report

Just over one-fifth (21%) of those surveyed said they were now considering social housing due to the private home ownership market becoming so challenging

Concerns around the affordability of private housing are pushing more and more young people towards applying for social housing instead, according to new research.

PTSB's new Reflecting Ireland report found that almost half (46%) of people who are in the market to buy a home are now considering applying for social housing. This increases to 61% among those aged 18 to 24.

Just over one-fifth (21%) of those surveyed said they were now considering social housing due to the private home ownership market becoming so challenging.

The report, compiled by Core Research on behalf of PTSB, also revealed how, in the face of ever-increasing house prices, many first-time buyers (FTBs) are struggling to save for a deposit.

Only 41% of FTBs included in the report said they had enough saved for a deposit (minimum 10% of the purchase price) on their home. One-third said they had some savings in place but not enough for a deposit, while 27% said they had yet to start saving.

The report also found that homebuyers are increasingly relying on their family for assistance, with one-third of those in the market stating that they would need gifts or inheritances from their family to help put the money for a deposit together.

Around 68% of survey respondents stated that they expected house prices to continue to rise, with 66% saying they "strongly believe" that future generations would find it even harder to own their own home.

Despite these factors, a majority (60%) of those included in the Reflecting Ireland research survey, published ahead of the PTSB Ideal Home Show in Dublin this weekend, stated that home ownership was "very important to them".

Long-term renting was not seen as a preferable option by most of those surveyed, with just over one-third (35%) of adults saying that renting long-term suits people like them. However, this rose to 53% among 18 to 24-year-olds.

Notwithstanding the difficulties in saving for a deposit, 10% of FTBs said they were planning to spend more than €650,000 on their first home, while 61% said they were planning to spend less than €350,000.

Chief sustainability and corporate affairs officer at PTSB Leontia Fannin said the report outlines "a shift in attitudes towards housing and homeownership", as well as "evidence of the struggles first-time buyers are facing".

Claire Cogan, behavioural scientist at BehaviourWise, said the report paints "a difficult picture for first-time buyers, many of whom are struggling to save for a deposit and are frustrated at having to wait longer to begin living independently".

"More generally, it shows continued resilience among consumers in response to economic challenges," she added.

"Negative sentiment is at its lowest level since the days of the pandemic, but consumers continue to show concern over cost-of-living pressures and the cost of housing.”