House prices have risen by more than 10% in a year, new figures show
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The cost of buying a home in Ireland is rising at its fastest rate for almost two years, new figures have shown.
The Central Statistics Office’s Property Price Index showed double-digit inflation of 10.1% in the 12 months to August, with the median price for a home nationally now standing at €345,000.
This is the highest rate of inflation since September 2022, and again shows how squeezed the market has become for buyers, with prices continuing to surge.
Homebuying has fallen. There were 3,900 homes purchased in August 2024, a 14% drop compared to the same month in 2023.
Niall Corkery, a statistician with the CSO, said: “Outside Dublin, house prices were up by 9.5% and apartment prices increased by 10.1%.
“The region outside of Dublin that saw the largest rise in house prices was the border (Cavan, Donegal, Leitrim, Monaghan, and Sligo) at 15.1%, while at the other end of the scale, the Mid-East (Kildare, Louth, Meath, and Wicklow) saw an 8% rise.”
In the South-West, incorporating Cork and Kerry, meanwhile, prices have risen 9.1% in the last year.
This further evidence showing the rising cost of housing may only heighten the pressure on the Government, which is expected to deliver its updated housing targets in the coming weeks.
Reacting to the CSO figures, Brokers Ireland said disruptive change was needed to halt runaway prices in the housing market.
“We’re drowning in reports and political debate but it seems obvious that something different is needed to stimulate more supply,” its deputy chief executive Rachel McGovern said.
“That is the only real answer to stabilising prices and making homes more affordable.”
The Institute of Professional Auctioneers and Valuers also pointed to a “chronic” supply shortage as it added to calls for recommendations of the Housing Commission to be implemented.
“The squeeze also has the double whammy that many intended sellers keen to find an alternative home are holding off out of concern that either they may not find a suitable property or that they may get caught with increasing prices,” its chief executive Pat Davitt said.
Also responding to the latest figures were opposition TDs, who pinned the blame for the rising prices on the Government, claiming their own plans would address the crisis.
“When this Government took office in June 2020, the median price for a home in Ireland was €260,000,” said Social Democrats housing spokesperson Cian O’Callaghan.
Sinn Féin TD for Cork North Central Thomas Gould, meanwhile, accused the Government of only wanting to “line the pockets of developers”.
“For those trapped in spare bedrooms or paying extortionate rents, this is just another blow,” he said.
Speaking after the budget announcement earlier this month, Housing Minister Darragh O’Brien said the current Government was investing more than any before in housing.
“This budget will allow us to keep our foot on the pedal and sustain this strong delivery,” he said.