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.
The Current Landscape: Climbing Prices Amid Crisis
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[1]``[2].
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[3]``[4].
The 2025-2026 Outlook: Higher Prices, Greater Inequality
Forecasts suggest property prices in Ireland will continue to climb from 2025-2026 due to several interrelated factors:
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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[5]``[6]. When housing demand becomes synonymous with wealth preservation or investment rather than providing shelter, ordinary people are pushed out of the market. -
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[7]. -
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[8]``[9].
What This Means for Ordinary People
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[10]``[11].
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.
Fixing the Irish Housing Market: Addressing Wealth Inequality
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:
- Tax Reforms on Asset Gains: Implementing targeted taxes on property speculation and wealth could deter asset hoarding by the elite
[12]``[13]. - Focus on Affordable Housing Supply: Government policy must incentivise the building of affordable homes to actually meet the needs of working people.
- Restricting Foreign Investment in Residential Property: Limiting purchases by international investors could reduce speculative buying.
Without systemic change, Ireland risks reaching an economic tipping point where vast sections of the population lose hope in achieving financial security through homeownership.
Conclusion: A Rigged System Unless We Act
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.
Meta Description
Discover the 2025-2026 forecast for the Irish housing market, revealing rising property prices and the increasing inequality excluding families from homeownership
Suggested Visuals for Article:
- Graph: Showcasing the widening gap between wages and average house prices over the past decade in Ireland.
- Map: Highlight regions in Ireland most affected by housing inflation versus average income levels.
- Illustration/Flowchart: A visual breakdown of the cycle of wealth inequality driving housing unaffordability.
- Infographic: Impact of property speculation and asset hoarding on housing availability for families.