Forget about rent! You can't afford it
22 May 2025
If you've been following us for a while, you'll know the housing crisis is a European-wide issue, but Ireland is in a league of its own. The average monthly rent just surpassed €2,000 for the first time ever. This is up from €765 in 2011, and 48% higher than before the pandemic.
Ireland has experienced Europe's most dramatic housing evolution: it is where house prices and housing costs (the monthly rent or mortgage along with other costs related to living in a dwelling) grew the most between 2010 and 2023, from 17% to 101% above EU average in 2023. Homelessness numbers have also risen significantly, doubling between 2016 and 2024 from roughly 7,000 to 15,000.
So, why does Ireland have it worse? The main reason is supply: housing policies have failed to keep up with the country's fast-growing population in recent years. The latest estimates say that around 93,000 new homes need to be built each year until 2031 to house everyone, nearly triple what the government's current plan aims to deliver.
Then there are other problems. Experts say there aren't enough developers building homes, not enough workers to do the construction, and too much private money going into expensive rentals. All the while, attracting investment into affordable housing remains difficult due to complex regulations. Add to that a strong economy and a booming tech sector attracting many high-skilled workers from abroad, and you get one of the most complex housing crises in Europe.
Apart from ramping up homebuilding, the government is also offering grants for derelict home renovation and has extended support schemes for first-time buyers. It's also looking to ease planning rules and help older people downsize. But it's not really working – or at least, not fast enough.
 | Ciara Boulman That's probably the biggest paradox. While Ireland's economy is doing particularly well in an otherwise stagnant Europe, it is incapable of housing its people. For some, the situation feels so hopeless that it's better to look overseas, with one popular destination: Australia. Emigration to the island had slowed since Ireland recovered from the financial crash, but last year marked the record number of departures since 2013. Let me tell you: among young Irish people, not a single one can say they haven't joked about moving Down Under. |
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