Kilkenny Faces Housing Crisis as Prices Surge Amid Demand

The latest report from the Institute of Professional Auctioneers & Valuers (IPAV) reveals that housing prices in Ireland continue to rise, driven by high demand and a critical supply shortage. In the first half of 2025, national house prices increased by 5.05%, bringing the average cost of a home in Ireland to nearly €386,000. This trend has significant implications for prospective buyers, particularly in Kilkenny.

In Kilkenny, three-bedroom semi-detached houses have an average price of €305,000, while four-bedroom homes are priced at approximately €385,000. This positions Kilkenny in the middle tier of the national market, surpassing areas like Tipperary and Longford, but lagging behind commuter counties such as Kildare and Wicklow. Notably, neighbouring counties are experiencing rapid growth, with Carlow and Waterford seeing significant increases in prices—9.7% and nearly 9% respectively for three-bedroom semis.

This increase indicates a “ripple effect” as buyers priced out of Kilkenny seek more affordable options in surrounding areas. As prices in Carlow and Waterford rise, the pressure on Kilkenny remains unchanged due to insufficient supply. Families are increasingly feeling the financial strain, with many first-time buyers relying on family support to gather enough for a deposit. For those earning average wages, the challenge of affording a home becomes more daunting as market conditions shift.

Pat Davitt, Chief Executive of IPAV, has warned that the Irish Government’s target of delivering 41,000 homes by the end of 2025 is unlikely to be met. He advocates for “unprecedented measures” to expedite planning and infrastructure processes while encouraging small and medium-sized builders to re-enter the market. His call for action is particularly relevant in Kilkenny, where the need for diverse housing options is urgent. This includes more zoned land with available services, faster planning decisions, and a broader variety of housing types to accommodate different needs.

The IPAV report also highlights a troubling national trend: state-backed entities are competing with first-time buyers for available properties, filling a void left by decreasing institutional investors. Furthermore, there is an increasing presence of buyers from the United States who are purchasing homes as primary residences rather than just holiday properties. This trend illustrates that Kilkenny is not isolated from external market pressures.

The influx of cash buyers from a variety of nationalities further complicates the situation, as local families find themselves competing against international demand. Without a significant increase in housing supply, affordability for local residents is likely to deteriorate further. The IPAV Barometer indicates that unless supply improves, prices will continue their upward trajectory.

Looking ahead, the challenge for Kilkenny is to ensure that when new housing developments do occur, they cater to the needs of local residents. The pressing message is clear: demand remains strong, and without adequate supply, the pressures on home prices are set to persist.