Irish Workers Need €1,000 Weekly Pay Rise to Afford Homes

In a heated exchange during the final Leaders’ Questions of the year, Donegal Deputy Pearse Doherty argued that Irish workers require a pay increase of €1,000 per week to cope with surging housing prices. This statement emerged amidst growing concerns over the government’s handling of the housing crisis.

Deputy Doherty criticized the government’s failure to address the escalating housing costs, which he claims have pushed many individuals and families further away from home ownership. The Economic and Social Research Institute (ESRI) released findings indicating that the decisions made in the 2026 Budget will lead to a 1.3% decline in disposable incomes for numerous households.

Rising Home Prices and Stagnant Wages

According to Deputy Doherty, the average price of a home in Ireland has increased by approximately €31,000 over the past year, equating to a staggering 7.3% rise. He asserted, “To keep pace with that single-year increase, a worker would need an equivalent pay increase of over €1,000 per week. No worker, even in their wildest dreams, would expect that.”

Highlighting the disconnect between falling disposable incomes and rising home prices, he stated, “While disposable incomes are falling as a result of the budget decisions, the price of buying a home is racing away at a pace that makes a mockery of the talk of affordability and opportunity.” The Deputy described the government’s budget as an “abject failure,” noting the impact on young adults forced to live in cramped conditions.

Government Response and Future Outlook

In response, Simon Harris, the Tánaiste, countered that wages are on the rise, as confirmed by the ESRI’s report. He stated, “Thankfully, on average, wages are finally growing ahead of prices, that will have a positive impact on people’s spending power and ability in 2026.” Harris emphasized that wage growth is expected to continue, which he believes will benefit consumers and families.

Addressing the ongoing housing crisis, Harris acknowledged, “Housing remains the biggest challenge this country faces, of that there is no doubt. We are working to fix housing once and for all.” He criticized Deputy Doherty for what he termed as mere political barbs rather than constructive contributions to the issue.

Deputy Doherty retaliated against Harris’s assertion of progress, stating, “You hoodwinked the electorate by claiming bogusly and falsely that you were building 40,000 houses last year. You did not do it.” Harris disagreed with this assertion, arguing that there has been a notable increase in planning permissions and housing completions this year.

He cited that 1,531 commencement notices for new homes were lodged with local authorities in November 2025, with Donegal County Council receiving 724 of these notices so far this year. This data suggests a potential upward trend in housing development, although many still question whether it will adequately meet the demands of a growing population.

As discussions continue, the disparity between income growth and housing affordability remains a pressing issue for many Irish citizens, particularly young adults seeking to enter the housing market.