Ireland’s housing crisis is getting worse as supply fails to keep up and affordability hits historic lows.
New data from the Central Statistics Office (CSO) reveals that property prices rose nearly 8% nationally in the 12 months to May—marking the 21st consecutive month of increases.
The median price of a home is now €370,000, up €5,000 from April and €35,000 from the same period last year.
Dublin saw prices climb by 7%, while regions outside the capital recorded an even sharper increase of nearly 9%.
The border counties of Cavan, Donegal, Leitrim, Monaghan, and Sligo led the surge with an 11% rise.
Dún Laoghaire-Rathdown had the highest median price at €670,000, while Leitrim had the lowest at €186,000. Blackrock in Dublin (Eircode A94) remains the most expensive area, with a median home price of €770,000.
Despite soaring prices, demand shows no signs of slowing.
In May 2025 alone, 3,824 residential property purchases were filed with the Revenue Commissioners—nearly €1.6 billion in value—of which only 911 were new homes.
First-time buyers made up 1,388 of those purchases.
The Economic and Social Research Institute (ESRI) has warned that no major increase in housing supply is expected this year or in 2026.
Tight labour conditions and low productivity in the construction sector mean that output is expected to fall well below government targets.
The ESRI estimates 33,000 new homes will be delivered in 2025 and 37,000 in 2026—far short of the 52,000 units the Central Bank says are needed annually to meet demand.
“This is a particularly stressed situation,” said ESRI economist Conor O'Toole. “We do not foresee any major uptick in supply for at least the next two years.”
Ireland’s affordability crisis is among the worst in Europe.
A February survey by the European Central Bank showed that 17% of Irish consumers are actively looking to buy or rent—a figure second only to the Netherlands.
Meanwhile, rents continue to climb, with the average monthly rent in Dublin now at €1,829.
A RE/MAX Europe survey found that one-third of Irish people are considering emigrating due to the high cost of housing—second only to Malta across the EU.
Around 20% of people said they are “struggling or really struggling” to cover housing costs, with another 35% saying they are barely coping.
Homelessness is also on the rise, hitting a record 14,500 people at the start of 2025.
The crisis is leading to wider economic strain, with many people cutting back on shopping and travel.
Even Ryanair CEO Michael O’Leary recently described getting a “recessionary feel” from passengers.
While Ireland’s economy has thrived in recent years, mainly due to foreign investment and tech sector growth, the housing system has failed to keep pace.
Without significant intervention, Ireland may once again face an era of mass emigration, driven not by lack of opportunity but by the simple inability to afford a place to live.
As Michael Polzler, CEO of RE/MAX Europe, put it, “You can’t grow an economy without housing.”
See More: CSO, ESRI, Housing, Housing Crisis
