Ireland’s Housing Crisis: Why 2025–2026 Will Be Worse for Ordinary People
The Irish housing market is on track to become even more unforgiving for ordinary people by 2025–2026. Surging house prices, a lack of affordable supply, and deepening wealth inequality are combining to shut out younger generations and working families from homeownership altogether.
This article unpacks why buying a home in Ireland is slipping out of reach for so many, where the market is headed, and the systemic inequality fuelling the crisis.
The Current Landscape: Climbing Prices, Crumbling Hope
Ireland’s property prices have soared in recent years, fuelled by inflation, chronic undersupply, and broader financial system flaws. Government schemes like rent caps or shared equity programmes have tried to paper over the cracks—but the core problem is wealth inequality.
While the wealthy gain from rising asset values, ordinary workers watch their dreams of owning a home fade. Incomes have flatlined while the cost of buying a house has skyrocketed.
Average, house prices are now over 10 times the average salary in Dublin—far beyond what most families can afford.
2025–2026 Forecast: Higher Prices, Deeper Inequality
The Irish property market isn’t slowing down. Forecasts suggest prices will continue rising, for three key reasons:
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Wealth-Driven Demand
The wealthy use property as an investment or store of value. They can pay in cash or leverage wealth, making it easy to outbid mortgage-dependent buyers.
Housing becomes less about shelter, more about preserving wealth. -
Lack of Affordable Supply
New builds remain expensive due to inflation and land hoarding. Developers prioritise high-end units for higher profits, not family homes for working people. -
Asset Hoarding
Property is treated like stock—bought by the wealthy for rental income or resale. This hoarding reduces available homes and pushes up both prices and rents.
What This Means for Ordinary People
By 2025–2026, many Irish families may find homeownership permanently out of reach. The wage-to-house-price ratio is worse than ever before, and the rental market offers no relief.
With fewer homes available to buy, demand shifts to renting—driving up rents and financial strain. Families are stuck paying high rents, unable to save, while wealth continues to concentrate at the top.
💡 Real impact: A household earning €50,000 per year would now need nearly 20 years of gross income to buy an average home in Dublin or Cork. In turn, Mortgages will increase
Fixing the Irish Housing Market: It Starts with Inequality
If Ireland wants to solve its housing crisis, we must go beyond surface-level fixes. The root problem is wealth inequality. Here's how we can start to fix it:
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Tax Property Speculation
Introduce higher taxes on property flipping and multiple-home ownership to reduce asset hoarding. -
Incentivise Affordable Housing
Government subsidies and zoning laws must prioritise truly affordable homes—not luxury developments. -
Restrict Foreign Investment
Limit non-resident buyers who are purchasing Irish homes as speculative investments, not places to live.
Without bold action, we risk becoming a nation where only the rich can afford to live with stability.
Conclusion: A Rigged System Unless We Act
The 2025–2026 housing forecast isn’t just a warning—it’s a call to action.
If current trends continue, homeownership will be reserved for those born into wealth, while the rest of society rents at ever-higher prices, with no path to financial security. This isn’t just an economic issue—it’s a societal one.
Unless we confront the real driver—wealth inequality—Ireland’s housing system will remain rigged in favour of the few at the expense of the many.