Although housing supply increased 25% on previous year, there was still at 48% shortfall in housing in the Republic of Ireland last year. More worrying still, people on average income could only afford 5% of new houses sold in the Dublin area.
Today’s Housing 2019 report published by Initiative Ireland, shows not only a significant shortfall in supply of new housing stock nationwide but also a lack of affordability, with too many developments falling outside the affordable price range for most families.
Analysis conducted by Initiative Ireland shows that even with the government’s ‘Help-to-Buy’ Scheme and a 90% loan-to-value mortgage households earning the average gross income of €57,200 would only be able to afford 5% of houses on the market.
The numbers weren’t so bad in the Midlands with 80% of houses on the market deemed affordable. However, according to the research, this region only 30% of the houses they needed as the homelessness and housing crises to continue.
While the numbers for the Midlands are more encouraging, the fact is the demand is around the capital.
“Half of all Irish housing demand will fall within the Greater Dublin Area by 2031, said Padraig W Rushe, CEO of Initiative Ireland.
We should see significant investment in affordable housing in the region based on demand and yet because this is where the all-in cost of construction is highest, the minimum cost of delivering housing units is proving too close to or falling below the end purchase price.”
Full report available at https://www.initiativeireland.ie/media