MyHomes.ie data reveals national asking prices increased by 7.5% year-on-year
Ireland requires more than 200,000 additional homes this year to match the UK’s housing-to-population ratio, according to a new report from MyHome.ie in association with Bank of Ireland. The quarterly house price report, released today, indicates that Ireland’s housing market is under significant pressure due to population growth and insufficient supply. This 206,000 figure represents a substantial increase from the 138,000 homes needed in 2020.
Conall MacCoille, Chief Economist at Bank of Ireland and author of the report, highlighted the rapid population growth: “Ireland’s population grew by 1.9% for a second successive year, to 5.38 million in 2024. We have not seen population and economic growth at this level since the Celtic Tiger era.”
The report reveals that national asking prices increased by 7.5% over the past year, the highest rate of annual inflation in two years. Dublin experienced a 6.2% price increase, while the rest of Ireland saw an 8.5% rise. Notably, one in seven properties are now selling for 20% above the asking price. The median asking price nationally stands at €365,000, with Dublin at €455,000 and the rest of the country at €315,000.
Several factors are contributing to the current market conditions. Average earnings are growing at 5.6%, enabling homeowners to borrow more. This has led to average mortgage approval values reaching a record high of €318,300, up 6.2% year-on-year. Despite strong demand, residential transaction volumes in the first half of the year decreased by 5%, indicating a shortage of available properties. In September, only 13,100 properties were listed for sale on MyHome.ie, a figure well below pre-pandemic levels.
The construction sector shows some signs of increased activity, with housing starts rising to 49,000 in the 12 months to July. This suggests that completions may increase in 2025, potentially exceeding 40,000 units. Joanne Geary, Managing Director of MyHome.ie, commented on this trend: “It is heartening to see housing starts continue to rise as well as expectations that housing completions will exceed 40,000 units next year. This trend needs to continue for years to come to address the market imbalance.”
Looking ahead, MacCoille forecasts that while official measures of house price inflation are likely to peak in the coming months, another mid-single digit price increase is probable for 2025. The report highlights the ongoing challenges in Ireland’s housing market, with demand significantly outpacing supply as the population continues to grow rapidly.
