House Prices Surge to Eight Times Average Earnings in 2025

The average price of residential properties in Ireland has reached a staggering eight times the average earnings, marking the highest ratio since 2009. The findings come from a recent report by MyHome in collaboration with Bank of Ireland, which details housing trends in the third quarter of 2025. The report indicates that the average asking price for homes nationwide stands at €385,000, while the average earnings are recorded at €53,000.

A significant trend highlighted in the report is the increasing number of homes selling for above the asking price. One-fifth of all properties are now sold for 20% or more above their listed price. Nationwide, annual asking price inflation is reported at 5.7%, with a 4.8% increase in Dublin and a higher 6.2% rise in the rest of Ireland.

Regional Variations and Market Dynamics

Inflation rates vary significantly across the country. Co Roscommon reported the highest inflation at 14.86%, while Co Monaghan experienced a decrease of 4.76%. The report notes that these inflation rates are the lowest observed in two years, a situation attributed to stretched affordability and the introduction of increased borrowing limits for first-time buyers by the Central Bank.

Despite the challenges faced by first-time buyers, the report paints a complex picture of the housing market. It points out a growing disconnect between potential buyers and current homeowners. “A chasm now exists between the high number of first-time buyers looking to buy and existing homeowners unwilling to move,” the report states.

In an encouraging note, housing completions are at their highest levels since the Celtic Tiger era, with 32,700 units completed between June 2024 and June 2025. MyHome forecasts that this number could rise to 34,500 home completions this year, driven by a reduction in VAT on the sale of completed apartments introduced in the recent budget.

Market Challenges and Future Predictions

The Chief Economist at Bank of Ireland, Conall MacCoille, emphasized that while house price inflation is showing signs of slowing down, the market remains challenging. He noted, “The pace of price rises is merely softening,” indicating that homebuyers still face significant hurdles.

As of September 2025, the average residential property sold for €426,000, reiterating that house prices are at their most expensive relative to earnings since 2009. The competition remains intense, with typical properties being sold at 8% above their original asking prices. One-fifth of transactions were settled at 20% or more above the asking price, underscoring the fierce competition in the housing market.

While affordability continues to be a pressing concern, the increase in housing completions presents a potential avenue for relief. MacCoille remarked, “Despite the difficult market, home completions represented a silver lining, rising to 32,700 in the twelve months to June, the highest level since the Celtic Tiger era.”

As the housing landscape continues to evolve, stakeholders will need to navigate the complexities of rising prices, competition, and the pressing need for affordable housing solutions.