Irish Homes Surge 52% Above Pre-COVID Prices, Experts Warn

UPDATE: New reports reveal that homes in the Republic of Ireland are now selling for an astonishing 52% more than pre-COVID levels, intensifying the ongoing housing crisis. Experts warn that the shortage of available homes will drag into 2026 as construction struggles to meet skyrocketing demand.

According to a new report from Daft.ie, asking prices for homes increased by an average of 5.5% last year, slightly below the previous year’s 6.8% increase but still alarming. The report highlights that current asking prices are 41% above pre-pandemic levels and just 10% below the peak experienced during the Celtic Tiger era.

Ronan Lyons, an economics professor at Trinity College Dublin, emphasizes that the Republic needs to build between 60,000 and 70,000 new homes annually to address this crisis. However, projections indicate only about 30,000 new houses will be completed in 2025. “What will help is getting lots of new homes built and sold,” Prof. Lyons stated, underscoring the urgency of the situation.

In Dublin, the average asking price for a three-bedroom semi-detached home has climbed to €611,000, up 3.1% from a year ago. In other cities across the country, prices average €390,000, reflecting a 4.5% increase. The median price of newly constructed homes has surged to €375,000, marking a 10% rise over the year.

Outside the capital, regions are seeing significant price hikes as well, with Leinster experiencing a 7.3% increase to €363,000 and Connacht/Ulster witnessing an 11.6% rise, bringing their average to €246,000. Meanwhile, Munster’s prices have surged 5.7% to €300,000.

The report also reveals a widening gap between asking and sale prices. Currently, transaction prices are 92% higher than a decade ago, reflecting the ongoing demand crisis. With only 10,000 to 12,000 second-hand homes available for sale—down from 25,000 to 30,000 prior to COVID—pressure on the market is expected to persist, pushing prices higher.

Prof. Lyons further points out that the low availability of second-hand homes is a major indicator of market health. “When the number of second-hand homes is pretty low, it usually means that there is tight pressure on the market,” he explained. Currently, there are 11,551 second-hand homes listed for sale, which is less than half the pre-pandemic average from 2015 to 2019.

Looking ahead, there are serious concerns about the Republic’s ability to meet housing needs. Prof. Lyons argues that “certainty and viability” remain significant barriers to increasing housing supply. Rising costs are making it increasingly difficult for developers to build affordable homes, which is critical for addressing the nation’s chronic shortage.

As the housing crisis continues to unfold, authorities and experts are calling for urgent action to increase the number of homes built across all sectors—owner-occupied, social, and rental—to create a housing market that reflects society’s needs.

Stay informed with the latest updates on this developing story as Ireland grapples with its housing crisis.