House prices are continuing to climb at an annual rate of 7.6% as of September, driven largely by persistent supply shortages that keep demand soaring. But here’s where it gets controversial—while the yearly percentage growth has stabilized around 7 to 8% for most of this year, it’s a significant drop from the double-digit increases experienced last year. Still, that headline figure is more than just a number; it signals that rising house prices are outpacing the growth of average wages, gradually eating away at the buying power of prospective homeowners.
According to the latest residential property index from the Central Statistics Office (CSO), house prices within Dublin increased by 5.3% over the year ending in September. This is a noticeable slowdown from nearly 11% growth recorded in September of the previous year. Outside the capital, the growth rate was slightly higher—9.4% in September—just a marginal increase from the 9.3% seen in September 2024, highlighting that the housing affordability challenge is widespread.
Looking at the market from a different angle, the median price—meaning the middle point where half the homes cost more and half cost less—stood at €380,000 across the country for homes bought over the last year. The most expensive median prices were found in Dún Laoghaire-Rathdown, where the typical home cost €675,000, whereas Donegal had the lowest median at €190,000.
Trevor Grant, chair of Irish Mortgage Advisors, expressed concern about these trends, noting that the acceleration in house price growth only makes the dream of homeownership more elusive for many. 'The rising rate of house price increases will only deepen worries among hopeful buyers,' he said. And with just over a month left in the year, many are beginning to accept that 2025 might pass without them achieving their goal of owning a home—an all-too-familiar frustration for many.
So, are we heading towards a housing market where affordability becomes an even more distant dream? Or is this slowdown a sign of impending stabilization? Share your thoughts—do you think these rising prices are sustainable, or are they setting us up for a bigger correction? Let’s discuss.
