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.

The Housing Crisis in Numbers

Ireland's housing market is painfully unaffordable for most people, and the numbers back this up:

• Average House Prices: Irish homes now cost €359,000 nationwide, climbing beyond the reach of even two-income households.
• Rents Skyrocket: Dubliners face average monthly rents exceeding €2,200, creating a vicious cycle where families can barely save.
• 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.

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.

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.

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.

Why Homes Are Unaffordable

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:

1. Landlords and Institutional Investors Dominate the Market

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.

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.

2. Wealth and Speculation Fuel Soaring Prices

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.

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.

3. Stagnant Wages Compound the Problem

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.

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.

4. Limited Government Action

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.

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.

What This Means for Families in Ireland

The effects of unaffordable housing ripple far beyond homeownership. Here's what happens when a basic necessity is too expensive for most:

• Financial Insecurity: Families unable to own homes struggle to save and plan for the future.
• Generational Inequality: Young Irish workers are at risk of never building the wealth older generations took for granted.
• Broken Communities: Expensive housing erodes communities as workers are forced to migrate further from cities or move abroad entirely.

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.

What Can Be Done?

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:

1. Tax the Wealthy

Implement progressive property taxes targeting large portfolios owned by institutional investors. This would discourage speculative buying and generate revenue to build affordable housing.

2. Massively Expand Public Housing

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.

3. Close Investor Loopholes

Introduce stronger restrictions on corporate landlords and limit large-scale purchases by institutional investors. This would stop wealthy groups from dominating the housing market.

4. Rent Control and Tenant Protections

Rent caps and stronger tenant rights laws would ensure families aren't displaced by arbitrary rent hikes, creating more balanced housing stability.

It's Not Your Fault

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.