Housing crisis deepens as Irish property prices surge and affordability concerns grow

All told house prices in Dublin rose by 6.1% compared with 7.7% elsewhere, though overall prices in the capital continue to outstrip those seen in the rest of the country. File picture

House prices have begun to increase yet again ramping up pressure on prospective buyers, according to the latest figures from the Central Statistics Office.

The CSO said that prices in the 12 months to end January 2026 rose by 7%, up from the 6.9% noted in the year up to the end of December 2025.

The latest statistics from the CSO’s residential property price index echoed recent trends with the rate of growth higher outside of Dublin compared with prices in the city itself.

All told house prices in Dublin rose by 6.1% compared with 7.7% elsewhere, though overall prices in the capital continue to outstrip those seen in the rest of the country.

Those figures show considerable variance from those seen in December however, when prices rose by 5.6% in Dublin and 8.1% elsewhere, suggesting that the market in Dublin is starting to heat up once again.

The median price of a home across the country was also up slightly, up to €390,000 from the €387,000 noted in January.

The highest median price paid for a home by eircode was the €840,000 seen in Blackrock in south Dublin, while the most expensive region was Dun Laoghaire-Rathdown, also in south Dublin, with a median cost of €680,000.

Elsewhere, the lowest price by eircode was, once more, Castlerea in Co Roscommon with a median price of €153,000.

Ross Lynch, senior mortgage adviser with NFP Ireland, said the latest figures would likely leave aspiring homeowners “concerned” by the acceleration seen in asking prices.

“It means they are likely to continue to face significant affordability issues, particularly first-time buyers in certain areas, where demand remains high and new supply is still falling short."

He said property price inflation continues to be driven by the long-standing shortage of homes in Ireland, coupled with the sustained population growth noted over the past five years.

He added, however, that there may be a silver lining for those negotiating the housing market – with figures published last week indicating that the number of new homes granted planning permission in 2025 jumping by 7.9% year-on-year, perhaps indicating that supply issues are gradually easing.

"It’s important that these approvals turn into completed homes as this will ultimately help to stem the rate of house price inflation,” Mr Lynch said.

The consistent rise in prices continues to be driven by an outsized increase in apartment prices, particularly outside Dublin, with sale costs for such dwellings in the rest of the country up by 12.3% compared with 7.8% in the capital.

Prices across the country remain more than 25% ahead of the highest levels seen during the previous property bubble in the State, just before the financial crash in April 2007.

That stat is slightly skewed by region however, with prices in Dublin just under 11% higher than at the height of the Celtic Tiger, while the figure is 27.5% for the rest of the country.

Chair of Irish Mortgage Advisers Trevor Grant suggested there may be no respite in sight for those hoping to buy or trade up.

“Now we are into spring, momentum is building up in the housing market again and this could drive the rate of house price inflation up even higher in the coming months,” he said.