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FIRST TIME BUYERS are spending nearly ten per cent more of their income on housing in Dublin than in the rest of the country.
The average working couple spends just under a quarter (24 per cent) of their net income on housing, with buyers outside the capital stumping up 16.7 per cent of their take home pay for housing.
Outside Dublin, home buyers are paying around €155,000 for a property, which is 33 per cent less than in the capital, currently around €234,000.
While the affordability level in Dublin is significantly higher than the rest of the country, it is still some way off the peak of the housing market in December 2006 when the index was at 32.5 per cent.
The national affordability level is stable at 19.3 per cent of net income for a working couple paying for a first home, with the figure forecasted to rise to 19.6 per cent over the next month.
Report co-author Annette Hughes of DKM Economic Consultants said that supply issues are strangling the Dublin market.
“This needs to be addressed if first time buyers are to be accommodated at affordable prices. The supply issue is perhaps the single most important challenge facing the property market in 2014.”
EBS head of mortgages called the figures “generally encouraging” and added that the lender is seeing a noticeable increase in mortgage applications.
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Now I like the Journal but Christ it’s gettin to be so property driven in its coverage, let your sister company do it’s own work (Daft.ie) and try cover diff topics?
How many articles have had a for sale sign on this website in the past month??? It’s close to 10%.
I have an urge to get a mortgage I don’t want. Daft and all other estate agents use the media very well to drive property sales at a time when the country is still up to it’s neck in personal debt.
Give it a rest Journal.
Hi Fergal,
Thanks for the comment.
While there has been more articles of late than usual about property, this is more due to the news cycle than any editorial policy.
The topic has been much discussed in recent days due to the ‘housing crisis’, and on top of that there’s been the usual monthly and quarterly reports coming out.
Many thanks,
Jack
There is a school of thought that advocates bubbles as an effective solution to ….. Bubbles.
” This was a prewar-style recession, a morning after brought on by irrational exuberance. To fight this recession the Fed needs more than a snapback; it needs soaring household spending to offset moribund business investment. And to do that, as Paul McCulley of Pimco put it, Alan Greenspan needs to create a housing bubble to replace the Nasdaq bubble.”
http://www.nytimes.com/2002/08/02/opinion/dubya-s-double-dip.html
A bit like advocating decapitation as an effective solution to a toothache.
Fool me once. Shame on you.
Fool me twice. Shame on me.
Wait, so you’re saying houses cost more in Dublin than the rest of the country? Ground breaking stuff. How many property related articles can you do in a week, are you trying to set a record!? Give it a rest.
EBS are giving out mortgages? My arse! I applied recently & I was offered €8000. Yes you read that right. Most unfunny joke I’ve ever experienced.
Sure it’ll get ya a nice caravan, don’t know what your complaining about!
I’ll get ya 1 cheap!
€155,000 far away from Dublin. Not on the outskirts or anywhere near Dublin.
I have to agree with other posters now, the journal is turning into propaganda now. All the media hype and scaremongering is what made people panic last time which greatly contribute to the recession.
Sure isn’t that why the dubs have flooded Navan
Nobody lives in Dublin anymore, it’s too crowded
“Nobody lives in Dublin anymore, it’s too crowded”. You blew up my sarcasm detector!
How ridiculous…… Of course the price of housing in major urban city areas will be more expensive. The solution of building more housing in this area…. Is useless… When new housing is built…. All that going to happen…. Is that the housing will be marketed at the going rate. More housing will not bring down the price….
I apologize….. But you folks that think that building more houses in this area…… Are you deranged?
Take the city of Chicago in the US…. Over the past 15 years… They’ve built over 100 high-rise housing developments in the city. The prices didn’t come down…. In fact the prices went up. The only thing that happened is that developers upgraded the materials and the quality of the content. For example: In wall vacuum cleaners, top of the line double door refrigerators, concierge service and out door balconies.
I’m not saying that more housing is needed… But the thought that more will drive the price down is nonsensical.
Same thing is happening in London. Lots of high rise developments going up, just like the property prices. You wont get much in Dublin for €234k.
Seriously way too many b*ullsh*t first time buyer/property articles now. Exactly whose agenda are you pushing here? It’s getting beyond irritating.
Thankfully I have no desire to ever live there
Or is it a case of, you could never afford to.
Ha no, thankfully I’m not a peasant
I’m confused, Rick. You don’t live in Dublin and yet you are not a peasant. Where do you live? New York?
€234,000 for a property in Dublin? And the rest…..!
There are still many run down inner city properties that are empty. Why not start with regenerating the inner city and bring people back into the city centre. It would bring life into the city and with more people living in the city centre we would see increased services and amenities. We also need improved public transport into Dublin from the various commuter towns, it still amazes me that there are no late night trains between Dublin and Cork city.
“at the peak of the boom”. Sure that’s what we want to stay away from ya clown! And the difference between Dublin and the rest of Ireland now isn’t to much different between Dublin now and what it was like at the peak
Great so we have higher rents and mortgages, higher property taxes, higher costs for basic groceries/clothing etc any hope for a dublin tax credit then? And not for those that head home to mammy every Friday….
Capitalism is a race to the top “work hard, play hard” socialism is a race to the bottom.
But the parasites love socialism, and we all know how many of them are in Ireland
Is that the socialism for people that can’t, or won’t, work or the socialism for corporations and institutions that can’t, or won’t, work?
…your soul?
Dublin would have to pay me to live in it.
10% more on mortgage payments is 10% less to spend in the local economy, the kind of spending which creates employment and fuels recovery. The government seems content to see the same mistakes made yet again.
have your say