House price growth slows as affordability pressures intensify and supply risks persist
Annual price inflation eases to 6.8% with first monthly decline since 2023 amid rising cost concerns
19 April 2026 | 📧 editor@ipropertyradio.com
Annual residential property price growth eased to 6.8% in the year to February 2026, according to the latest data from the Central Statistics Office (CSO), signalling a continued moderation in price inflation as affordability constraints tighten across the market.
The latest figure marks a slight slowdown from the 7.1% increase recorded in the year to January and represents the lowest rate of annual growth in two years. On a monthly basis, property prices fell by 0.2% between January and February, the first decline recorded since May 2023.
The median price of a home purchased in the 12 months to February stood at €390,000 nationally, broadly unchanged month-on-month. In Dublin, the median price reached €500,000, with significant variation across the capital. Dún Laoghaire-Rathdown recorded the highest median at €681,500, while Fingal remained the most affordable at €475,500.
Outside Dublin, price growth continues to outpace the রাজধান. Residential property prices increased by 7.8% year-on-year compared to 5.6% in Dublin. Wicklow remained the most expensive market outside the capital, with a median price of €455,831, while Donegal was the least expensive at €198,000.
Despite the easing in price growth, the broader trajectory remains elevated. The CSO index shows that national property prices are now 25% above their previous peak in April 2007 and 179% higher than the post-crash low recorded in early 2013.
Transaction activity remains steady. In February, 3,370 dwelling purchases were recorded, with a total value of €1.47 billion. This included 2,558 existing homes and 812 new builds. First-time buyers accounted for 1,333 transactions, highlighting continued demand at entry level despite affordability pressures.
Economists point to a combination of demand constraints and external cost pressures shaping the current market. Rising interest rates and high purchase prices are increasingly limiting buyer capacity, contributing to the slowdown in inflation.
However, there are emerging risks on the supply side. Economist Austin Hughes has warned that escalating oil prices linked to geopolitical tensions in the Middle East are likely to increase construction costs, placing upward pressure on new housing delivery. Trevor Grant, Chairperson of Irish Mortgage Advisors, similarly cautioned that sustained energy price shocks could drive further increases in building materials, ultimately feeding back into house prices.
Separately, recent changes to rental regulations have not yet resulted in the anticipated contraction in supply. Instead, there has been a modest increase in rental listings following the introduction of new rules last month.
While the latest data indicates a softening in price momentum, the underlying imbalance between supply and demand, combined with rising construction costs, suggests that affordability will remain a central issue in the Irish housing market in the near term.
