Ireland really IS that bad lads: Statistics Edition

24 comments

1. Its 3.5x salary rule.

   Banks only give out a few 4.5x

2. They should be forced to sell some houses for less than the median price then.

3. – the standard salary multiplier is 3.5x. Although you may get an exemption for more.

   – you can’t take out a 100% LTV mortgage. It’s max 90% for FTBs. So the required salary is lower. Many people are using even larger deposits.

4. Just shop around, like!

5. Why do you think any of us want to own a house? I’ve no intention of buying a house and can see myself renting for all my life.

   Rather than get pissed off about prices of owning a house, we should move for more tenant rights like other countries.

6. There will be a lot of people here who won’t like these stats as they don’t suit the narrative Ireland inc is spinning.

   But reality cannot be denied.

7. Banks can only give 4.5x on 10% of new lending.

   Do this post with3.5x and you’ll absolutely despair

8. You know what would help? Yes that’s right, building more.

9. Bad statistical analysis.

   The use of a median suggests 50% of housing stock is cheaper than the value you’ve quoted, yet you’ve suggested anyone earning less than the median salary cannot afford a home because they cannot afford the median house price.

   Someone earning below the median salary can buy a below the median house price.

   There ends my ‘basics of statistics’ lesson for the day.

10. Anyone that has experienced (or had a loved one that has experienced) the worst of the HSE doesn’t need stats to tell you how bad Ireland is

11. >Half of ye will never own a house lads if things continue the way they are.

    That’s not what these stats are saying. These stats are saying half of the population will never own a house valued at the median price.

    It’s still a dire situation but the whole point of the median is that half of the housing supply is cheaper than that.

12. Ireland house prices will likely never come down, but they could at least be stabilized if a substantial number of new homes were quickly built. By various estimates, Ireland needs somewhere between 200,000 and 500,000 new housing units to serve our own population. Now that we are taking in tens of thousands of Ukrainian refugees, the number of needed homes is even higher.

    Everyone talks about this problem and everyone knows what the solution is, but no real action is ever taken. Our government needs to get 200,000 to 500,000 homes built within the next few years or we will never dig ourselves out of this mess.

13. Why would a single person want a median priced property? The average property being a 3 bed semi.

14. I think this paints a worse picture than reality.

    > 47% of workers earn less than than €31.6k to go halves on a mortgage

    * Lots of part time & casual workers in that statistic. Lots of students and similar, people that won’t be going for a house.
    * Entry level jobs pay much less but that’s mostly for people in their early 20s. Wages pick up in their early 30s before plauteing
    * The poorest workers get social housing

    So the average house buyer has a much higher average, and that’s why the demand exists.

    Edit: Still a very tough market to buy

15. 410K seems way cheaper than what I’m seeing in Dublin on Daft. Looks like 450-500K is entry

    If it was 410K lots of people would have no trouble entering the market (50K * 2 * 3.5) mortgage + (25K * 2) deposit

16. Yeah housing is fucked

17. The most frustrating thing about ireland is how incredible and succesful it could be.

18. >Half of ye will never own a house lads if things continue the way they are.

    welcome to most if not all countries in the world

19. OP how do you feel about the fact the majority of house sales in Ireland are to first time buyers with mortgages and that 70% of the population of Ireland are home owners?

20. I’m a single parent and I feel sick sometimes with the worry of how things are going. We live with family at the moment but we can’t stay long term, I don’t know what I’m supposed to do when he goes to school, if I put him in somewhere near where we are now then can’t afford to rent or buy. I spent so much of the last 4/ 5 years saving everything I earned to get a deposit, now my relationship is over that deposit money is basically useless and I’m gonna have spend it on rent + childcare. I feel so let down by everyone in charge.

21. This is nonsense. As has been pointed out multiple times “never owning a home” should be replaced with “never owning a home over the median cost” which is unsurprising as thats how medians work, half are below. It also assumes that there is only a 10% deposit, if you can save 10% then doubling the length of time saving should give you close to 25% assuming you arent just sticking it under the mattress. Suddenly your median dublin house is affordable by 2 people both earning slightly over 34k or a single person on slightly over 68k. Nationwide the median house price is affordable by 2 people on the proposed living wage(12.90 per hour) if they save up the 25% of the purchase cost. This idea of going straight for the 90% mortgage is a left over of the celtic tiger nonsense where not taking a 110% mortgage meant you were looked at weird.

    In summary, saving for longer equals affordable home.

22. The problem in Ireland is not just the cost if the houses themselves, but the low quality of a lot of the builds. Many of the houses selling for 600-800k are just grim and likely require an additional 100-200k worth of updates. It’s an embarrassing mess of a place

23. It’s even worse if for some reasons you want or have to rent. Buying here is bad, but renting is full blown crisis.

24. How fucking depressing honestly. I’m feeling more hopeless every day, not just in terms of owning a home some day but with everything. I’ve had enough of this world.