DUBLIN, Ireland: The average residential property sold in Ireland in 2025 cost 426,000 euros — roughly eight times the average annual income of 53,000 euros, marking the highest house price-to-earnings ratio since 2009.

According to the latest MyHome.ie quarterly property report, produced in association with Bank of Ireland, Irish homes have never been so expensive relative to incomes in over a decade, underscoring the growing affordability crisis in the housing market.

The report found that housing completions reached 32,700 in the 12 months to June, the highest figure since the Celtic Tiger years. Despite the increase in supply, the imbalance between demand and affordability persists. Average rents still suggest yields of around five percent, well above current retail mortgage interest rates of three to four percent. This indicates that property remains an attractive investment, even as first-time buyers struggle to gain a foothold.

Nationally, annual asking price inflation eased to 5.7 percent in the third quarter of 2025, its slowest pace in nearly two years. In Dublin, inflation fell to 4.8 percent, while prices in the rest of the country rose by 6.2 percent. On a quarterly basis, asking prices dipped by 0.4 percent nationwide, were flat in Dublin, and declined slightly elsewhere. The median asking price stood at 385,000 euros nationally, 475,000 euros in Dublin, and 340,000 euros across the rest of Ireland.

The last time asking price inflation was lower was in late 2023. MyHome attributed the slowdown to affordability constraints and the waning effect of the Central Bank's decision to ease borrowing limits for first-time buyers — a factor that had fueled price growth in previous years.

A sharp divide has now emerged between eager first-time buyers and reluctant existing homeowners. Over the past year, 27,000 first-time buyer mortgages were drawn down — the highest number since 2007 — while only 9,200 mover mortgages were issued, near a decade low.

Conall MacCoille, chief economist at Bank of Ireland and author of the report, said the data shows "house price inflation is finally slowing down," but stressed that the market remains "extremely difficult." He noted that only about 13,000 properties are currently listed for sale on MyHome.ie — far below the pre-pandemic norm of over 20,000.

MacCoille added that while affordability pressures are intensifying, the surge in home completions is a positive sign: "Predictions that homebuilding would contract in 2025 have proven well wide of the mark." He forecast that price growth will likely moderate to about five percent next year, roughly in line with wage growth, suggesting "a pause for breath" in the market.

MyHome managing director Joanne Geary said the rise in completions shows the government's focus on supply is "yielding positive outcomes." She welcomed Budget 2026 measures such as reducing VAT on completed apartments from 13.5 to nine percent, but warned that meaningful improvements in housing supply "will take time" and urged policymakers to sustain the momentum in homebuilding.