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We've all heard it: Get a good job, save diligently, and you'll afford a home someday. But more and more people in Ireland are realising that this advice doesn't hold up anymore. Millennials and Gen Z workers, despite earning decent wages in many cases, find themselves locked out of homeownership. The truth is, if you can't afford a home in Ireland today, it's not because you're failing—it's because the system isn't designed to work for you.
<h2>The Housing Crisis in Numbers</h2>
Ireland's housing market is painfully unaffordable for most people, and the numbers back this up:
<ul>
<li>Average House Prices: Irish homes now cost €359,000 nationwide, climbing beyond the reach of even two-income households.</li>
<li>Rents Skyrocket: Dubliners face average monthly rents exceeding €2,200, creating a vicious cycle where families can barely save.</li>
<li>Demand vs. Supply: Ireland builds approximately 25,000 homes each year, but the proper demand is over 35,000 annually, with supply continually falling short.</li>
</ul>
With these staggering statistics, one thing is clear: the dream of homeownership has been turned into a nightmare—one engineered by economic and political systems stacked in favour of a wealthy elite.
<img src="https://financial-blog-content.s3.eu-west-1.amazonaws.com/public/images/ie/why-is-everything-so-expensive-in-ireland/1743257777501-HousingPriceChart.png" alt="HousingPriceChart">
Source: Central Statistics Office Ireland (CSO), 2024
Looking at housing price trends since 2015, we can see how relentlessly house prices have climbed, with the average national house price increasing by over 75% in just nine years. This rise has far outpaced wage growth, making homeownership increasingly unattainable for ordinary workers.
<img src="https://financial-blog-content.s3.eu-west-1.amazonaws.com/public/images/ie/why-is-everything-so-expensive-in-ireland/1743257800238-RentalPriceChart.png" alt="RentalPriceChart">
Source: Residential Tenancies Board (RTB) and Daft.ie Rental Reports, 2024
The rental situation is equally challenging. Dublin rents have nearly doubled since 2015, while the national average has also seen dramatic increases. With such a significant portion of income going toward rent, saving for a deposit becomes nearly impossible for many.
<h2>Why Homes Are Unaffordable</h2>
At the heart of Ireland's housing crisis lies wealthy investors, speculative markets, and decades of inadequate policy. The recipe for unaffordable housing includes the following ingredients:
<h3>1. Landlords and Institutional Investors Dominate the Market</h3>
In Ireland, homes are increasingly treated as money-making investments rather than a basic human need. Institutional investors dominate the market, buying large chunks of housing stock to turn a profit through rent and rising property values. These corporate landlords drive up prices and leave aspiring buyers unable to compete.
<img src="https://financial-blog-content.s3.eu-west-1.amazonaws.com/public/images/ie/why-is-everything-so-expensive-in-ireland/1743257827566-MarketShareChart.png" alt="MarketShareChart">
Source: Central Bank of Ireland, Housing Market Report 2024
As illustrated above, investors now control a staggering 37% of the Irish housing market. With this level of investor dominance, ordinary buyers face steep competition from entities with significantly more purchasing power and financial flexibility.
<h3>2. Wealth and Speculation Fuel Soaring Prices</h3>
Wealth inequality amplifies the demand for assets like real estate, pricing everyday people out. Housing becomes not a place to live but a financial asset for the wealthy to grow their portfolios. As speculation takes over, housing prices spiral far beyond average income levels.
<img src="https://financial-blog-content.s3.eu-west-1.amazonaws.com/public/images/ie/why-is-everything-so-expensive-in-ireland/1743257846859-AffordabilityChart.png" alt="AffordabilityChart">
Source: Eurostat and Central Bank of Ireland, 2024
Ireland now has one of Europe's worst affordability ratios, with homes costing nearly 8 times the average annual income. International housing experts consider a ratio above 5.0 to be "severely unaffordable." As this comparison shows, Ireland's housing market has become significantly less affordable than many of its European counterparts.
<h3>3. Stagnant Wages Compound the Problem</h3>
Even as house prices climb year after year, wage growth has failed to keep up. For younger people, saving for a deposit while also paying steep rent is next to impossible. Housing costs now consume a much larger share of income than they did for previous generations, leaving thousands trapped in a cycle of renting with no viable path to ownership.
<img src="https://financial-blog-content.s3.eu-west-1.amazonaws.com/public/images/ie/why-is-everything-so-expensive-in-ireland/1743257865009-GrowthComparisonChart.png" alt="GrowthComparisonChart">
Source: Central Statistics Office Ireland and Central Bank of Ireland, 2024
The widening gap between wages and housing costs tells the story clearly. While wages have increased by only 31% since 2015, housing prices have surged by 76% during the same period. This growing disparity makes homeownership mathematically impossible for many working Irish citizens.
<h3>4. Limited Government Action</h3>
Despite the glaring issues, policies in Ireland have fallen short of fixing the crisis. Public housing projects are underfunded, and regulations to limit investor control or stabilise rent hikes have been insufficient. Without stronger intervention, the situation continues to worsen.
<img src="https://financial-blog-content.s3.eu-west-1.amazonaws.com/public/images/ie/why-is-everything-so-expensive-in-ireland/1743257881450-SupplyDemandChart.png" alt="SupplyDemandChart">
Source: Economic and Social Research Institute (ESRI) and Department of Housing, Ireland, 2024
The persistent gap between housing supply and demand has fueled this crisis. As this visualization shows, Ireland has consistently built 10,000 fewer homes each year than needed. This chronic undersupply creates a seller's market where prices continue to rise due to competition for limited housing stock.
<h2>What This Means for Families in Ireland</h2>
The effects of unaffordable housing ripple far beyond homeownership. Here's what happens when a basic necessity is too expensive for most:
<ul>
<li>Financial Insecurity: Families unable to own homes struggle to save and plan for the future.</li>
<li>Generational Inequality: Young Irish workers are at risk of never building the wealth older generations took for granted.</li>
<li>Broken Communities: Expensive housing erodes communities as workers are forced to migrate further from cities or move abroad entirely.</li>
</ul>
This isn't just a personal issue. It's a systemic failure that leaves everyday people paying the price of policies and markets geared toward profit over people.
<h2>What Can Be Done?</h2>
Ireland doesn't have to remain trapped in this cycle of unaffordable housing. Real change starts with addressing the root problem: economic inequality. Here are some solutions to rebalance the scales:
<h3>1. Tax the Wealthy</h3>
Implement progressive property taxes targeting large portfolios owned by institutional investors. This would discourage speculative buying and generate revenue to build affordable housing.
<h3>2. Massively Expand Public Housing</h3>
The government must invest substantially in affordable social housing projects. This would remove dependency on profit-driven private developers, ensuring supply grows in line with public needs.
<h3>3. Close Investor Loopholes</h3>
Introduce stronger restrictions on corporate landlords and limit large-scale purchases by institutional investors. This would stop wealthy groups from dominating the housing market.
<h3>4. Rent Control and Tenant Protections</h3>
Rent caps and stronger tenant rights laws would ensure families aren't displaced by arbitrary rent hikes, creating more balanced housing stability.
<h2>It's Not Your Fault</h2>
If you're struggling to buy a home in Ireland, let this be clear: it is not your fault. The housing market has been hijacked by investment interests and a system designed to enrich the wealthy at the expense of everyone else.
But things can change. By pushing for bold policies, supporting progressive housing reforms, and demanding fairness in the market, ordinary people can reclaim access to affordable homes. Housing is not—and should never be—a luxury. It's time Ireland made it a right for all.
Let's work together to build a fair housing system, so everyone can call Ireland home.

Can't Afford a Home in Ireland? It's Not Your Fault

Why Is Everything So Expensive in Ireland? If you're living in Ireland, you don't need anyone to tell you life is getting harder to afford. Rising rents, spiralling grocery costs, and eye-watering energy bills are eating into your income faster than ever. For many Irish families, it feels like the system is stacked against them. But why exactly has life in Ireland become so unaffordable? While inflation and global factors may play their part, the root causes of Ireland's high costs lie closer to home—shaped by wealth inequality, housing shortages, and an economic system designed to serve the wealthiest, not the rest. How Expensive Is Life in Ireland? Let's start with the numbers to understand how Ireland stacks up: Housing Costs: Property prices in Ireland have more than doubled since 2013, with the current average home price at €359,000. Monthly rents in Dublin exceed €2,200 on average. Grocery Bills: Irish households pay 20%-30% more for food than the EU average, with staples like bread, milk, and meat becoming increasingly costly. Energy Costs: Ireland consistently ranks among the most expensive European countries for electricity, with households seeing their energy bills rise 80% in recent years. Transport Costs: Fuel prices combined with costly public transport fares make commuting a significant burden for many families. For many, it feels impossible to get ahead. Each raise or small saving disappears into the black hole of ever-increasing living costs. Irish Household Expenses BreakdownSource: Central Statistics Office Ireland, Household Budget Survey 2024 As the chart above shows, housing costs now consume over a third of the average Irish household's disposable income, leaving less for other essentials like food, transport, and healthcare. Why Are Costs So High in Ireland? Ireland's affordability problems didn't happen overnight—they're the result of systemic issues deeply rooted in the structure of our economy. Let's break down the key causes: Top Drivers of Ireland's Cost-of-Living CrisisSource: Economic and Social Research Institute (ESRI) and Consumer Association of Ireland, 2024 <ol> <li>The Housing Market is Built for Profit, Not People The housing market is the biggest driver of Ireland's high cost of living. So why is housing so unaffordable?</li> </ol> Investor-Controlled Housing: Much of Ireland's housing stock has been snapped up by institutional investors and landlords who treat homes as income-generating assets. This drives up rents and sale prices, as these investors prioritise profits over affordability. Supply Shortages: Ireland hasn't built enough homes to meet demand for years. With only 25,000 new homes built annually, far short of the 35,000 needed, the competition drives prices higher. Government Inaction: Despite years of crisis-level prices, housing legislation remains too weak to curb speculation or enforce affordable housing initiatives. 2. Wealth Concentration Drives Inequality Ireland is a perfect example of how economic systems often protect the wealth of the elite while leaving ordinary families out in the cold. Wealth inequality creates a cascade effect: Wealthy investors target essential commodities like housing, pushing up costs beyond what middle- and low-income families can afford. Corporate concentration means fewer companies dominate key sectors, like utilities or food distribution, allowing them to set high prices unchallenged. The result? A system where the rich flourish while the rest of us shoulder the increased burden of higher costs. <ol start="3"> <li>Inflation and Profiteering While inflation is often seen as a global issue, in many sectors, rising prices in Ireland reflect something deeper: corporate profiteering.</li> </ol> Energy companies, for example, have posted record profits while consumers have struggled with their highest bills in decades. Grocery chains have been hiking prices far beyond global inflation rates, passing costs onto customers while expanding their earnings. Inflation in Ireland doesn't just reflect global supply chain stress—it reveals how unchecked corporations can exploit crises to enrich themselves further. <ol start="4"> <li>Wages Don't Keep Up with Costs Ireland's workers are seeing their pay stagnate while costs soar:</li> </ol> Wage Growth vs Housing Price Growth in IrelandSource: Central Statistics Office Ireland and Central Bank of Ireland, 2024 Between 2013 and 2023, wages in Ireland grew by roughly 20%, but housing and utility costs rose by over 100% in the same timeframe. Wage stagnation means families see less purchasing power with every passing year, while survival eats into their potential savings. Ultimately, the imbalance between costs and incomes represents a systemic failure. The Impact on Irish Families These high costs take a toll far beyond financial inconvenience. For ordinary people, this affordability crisis means: Lost Opportunities: Young professionals struggle to save for housing deposits, education, or long-term goals due to crippling rents and basic expenses. Generational Inequality: People born into wealth can inherit homes or financial stability, while others must start from scratch, widening the gap between the haves and have-nots. Crippling Stress: Many families are forced into impossible choices: cover rent or heat their home, buy groceries or pay for childcare. What Needs to Change? The cost-of-living crisis isn't inevitable—it's the result of policies and systems that can be restructured. Here are some critical reforms to make life in Ireland more affordable: <ol> <li> Target the Wealthy Fair taxation measures—especially on property portfolios and capital gains—would ensure Ireland's wealthiest individuals and corporations pay their fair share. </li> <li> Build Affordable Housing The government must invest heavily in public and social housing to boost supply and provide reasonably priced accommodation. </li> <li> Rein in Corporate Power Introduce tighter regulations on corporate profits in essential sectors like energy and food, ensuring companies don't escalate costs unnecessarily. </li> <li> Raise Wages in Line with Living Costs Implement living wage increases tied to inflation, ensuring that workers aren't left behind as prices climb further. </li> </ol> Final Thoughts: A Broken System, but Fixable The high cost of living in Ireland isn't simply the result of bad luck—it's the product of deliberate choices that protect wealth at the expense of the majority. But just as the current system has been built over time, so too can it be rebuilt to ensure fairness and affordability. It's time we demand better: policies that prioritise people over profit, taxes that challenge inequality, and systems that serve the many instead of the few. Ireland deserves an economy where people can thrive—not just survive.

Why Is Everything So Expensive in Ireland?

The Irish housing market is set to become an increasingly challenging space for ordinary people by 2025-2026. Rising house prices, driven by wealth inequality and systemic flaws in how both housing and the broader financial system operate, threaten to exclude younger generations and low-to-middle-income families. For these groups, aspirations of homeownership are dimming, while the wealthy stand to consolidate their position further in the market.
In this article, we’ll delve into why housing in Ireland is becoming unattainable for so many, forecast the trajectory of the market, and explore the underlying inequalities creating this crisis.
<hr>
<h2>The Current Landscape: Climbing Prices Amid Crisis</h2>
In recent years, Ireland has experienced soaring property prices, driven by new challenges like inflation, supply issues, and global economic pressures. Temporary government interventions such as rent caps or shared equity schemes have attempted to address symptoms of the problem, but the underlying issue remains: rising inequality. The wealthiest segment of society disproportionately benefits from asset inflation, including in property markets, while ordinary people are priced out altogether<code>[1]``[2]</code>.
For many families, stagnant wages coupled with sky-high house prices have created unprecedented financial insecurity. Owning a home is no longer a realistic milestone for most workers relying solely on their incomes<code>[3]``[4]</code>.
<hr>
<h2>The 2025-2026 Outlook: Higher Prices, Greater Inequality</h2>
Forecasts suggest property prices in Ireland will continue to climb from 2025-2026 due to several interrelated factors:
<ol>
<li>
Wealth Concentration Driving Housing Demand 
Wealth inequality fuels demand for assets, including houses, among wealthy individuals. These buyers, operating in cash or with significant capital, face fewer barriers in acquiring properties compared to families dependent on mortgages<code>[5]``[6]</code>. When housing demand becomes synonymous with wealth preservation or investment rather than providing shelter, ordinary people are pushed out of the market.
</li>
<li>
Lack of Affordable Supply 
While there may be construction in progress, the cost of new builds remains high due to material inflation and land speculation. Developers prioritise luxury homes that cater to wealthier buyers, avoiding affordable family housing because it offers lower returns<code>[7]</code>.
</li>
<li>
Asset Hoarding by the Wealthy 
Properties are increasingly being purchased as investment assets rather than homes. The wealthy treat houses like stocks, banking on value appreciation, and leasing them out at sky-high rents. This practice monopolises units that could accommodate families<code>[8]``[9]</code>.
</li>
</ol>
<hr>
<h2>What This Means for Ordinary People</h2>
By 2025-2026, home ownership could become a near-impossible goal for young families and those without generational wealth. The gap between wages and house prices is widening at an alarming rate in Ireland, setting the groundwork for a society where only the wealthy can own property<code>[10]``[11]</code>.
The rental market also offers no respite. With a limited supply of homes to buy, demand pivots to rental housing, driving up prices and compounding financial strain for households. This leaves many families in precarious situations where housing consumes the majority of their income, limiting opportunities to save or build wealth for future generations.
<hr>
<h2>Fixing the Irish Housing Market: Addressing Wealth Inequality</h2>
To address the impending crisis in the Irish housing market, the root issue of wealth inequality must first be tackled. Here are some potential solutions:
<ul>
<li>Tax Reforms on Asset Gains: Implementing targeted taxes on property speculation and wealth could deter asset hoarding by the elite<code>[12]``[13]</code>.</li>
<li>Focus on Affordable Housing Supply: Government policy must incentivise the building of affordable homes to actually meet the needs of working people.</li>
<li>Restricting Foreign Investment in Residential Property: Limiting purchases by international investors could reduce speculative buying.</li>
</ul>
Without systemic change, Ireland risks reaching an economic tipping point where vast sections of the population lose hope in achieving financial security through homeownership.
<hr>
<h2>Conclusion: A Rigged System Unless We Act</h2>
The forecast for Ireland’s housing market in 2025-2026 paints a bleak picture, but this trajectory can still be altered. The housing crisis is a manifestation of the broader issue of wealth inequality – where ownership and opportunities are concentrated in the hands of a few. Tackling this imbalance will not only help stabilise the market but could restore faith in the idea that hard work and prudent financial planning can lead to the same opportunities afforded to previous generations.
Time is running out. Without interventions in the form of policies and redistribution, Ireland’s housing market will mirror the ongoing wealth crisis: a system designed to favour the few at the expense of the many.
<hr>
<h3>Meta Description</h3>
Discover the 2025-2026 forecast for the Irish housing market, revealing rising property prices and the increasing inequality excluding families from homeownership
<hr>
<h3>Suggested Visuals for Article:</h3>
<ol>
<li>Graph: Showcasing the widening gap between wages and average house prices over the past decade in Ireland.</li>
<li>Map: Highlight regions in Ireland most affected by housing inflation versus average income levels.</li>
<li>Illustration/Flowchart: A visual breakdown of the cycle of wealth inequality driving housing unaffordability.</li>
<li>Infographic: Impact of property speculation and asset hoarding on housing availability for families.</li>
</ol>

Ireland's Housing Emergency & Cost of Living Surge

The Reality of Wealth Inequality in Ireland

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Selected Expense Comparison

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Ireland's Cost of Living Crisis: The Widening Gap Between Expenses and Income

Cost of Living vs. Wage Growth in Ireland (2015-2025)

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Can't Afford a Home in Ireland? It's Not Your Fault

Why Is Everything So Expensive in Ireland?

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Why Is Everything So Expensive in Ireland?

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