The current housing prices in Dublin have been talked about extensively recently. The newest trend shows that housing prices have reached peak affordability and now some of the wealthy classes of people are having trouble affording homes. Current house prices in Dublin are more than nine times the average salary making them unattainable for the majority of people because mortgages can only be 3.5 times your salary. Additionally, these numbers have not been seen since the Celtic Tiger Era, however, the central bank has been more careful this time and increased borrowing rules unlike during the Celtic Tiger Era. Prices are now beginning to slow down because simply nobody is able to afford them.
Inflation has also cooled off recently with a decrease from 12.4% last May to 2.8% a year later. Dublin has seen a significantly smaller inflation rate with an increase of prices from the current year to May of .6%.
The region of Dublin had the highest median price of 366,000 Euros which is just over 9 times more than its average salary of 40,000 Euros. Dún Laoghaire-Rathdown, which is known as one of the most expensive areas, had a median price of 538,000 Euros. That makes it 13.5 times the average annual salary.
The conclusion following these statistics show that first time buyers are at high disadvantages because they are required to have a comfortable savings account to afford a house. With the strict lending rules the central bank has initiated they are unable to take out a loan unless they have built up a savings account or have money coming from somewhere other than their job.
The central bank can be thanked for bringing inflation back to a healthy range, but, homeowners have not been better off by these actions. More people are switching over to the rental market because owning a house has become unattainable. This is starting to crowd up the rental sector and bring increased competition into that market. Just like the housing shortage that caused prices to soar a similar effect is prominent on the rental market. The government is balancing two stones right now and picked to fix the housing market, while the rental market becomes endangered.
