National Housing Prices Surge by 9% in 2024, Reports Show
The latest housing price report by Daft.ie reveals that national housing prices in Ireland have risen by an average of 9% during 2024. This significant increase comes after a year marked by both economic and demographic shifts.
National Trends in Q4 2024
At the end of the fourth quarter of 2024, the typical listed price nationwide stood at €332,109. This figure reflects a 1.4% uptick compared to the third quarter and a remarkable 30% rise from the onset of the pandemic in early 2020.
Urban Price Increases
Several major cities have experienced notable price hikes. Dublin’s prices increased by 9% during 2024, aligning with the national average. This marks the highest rate of inflation in the city since late 2017.
Galway city saw a similar growth rate. In Limerick, prices rose by 8.2%, and both Cork and Waterford cities experienced increases of 6.3%.
Rural Price Dynamics
Outside the main cities, inflation varied geographically. In Leinster, prices climbed by 11.1%, while Connacht-Ulster saw a more modest 5.3% increase.
Housing Supply Challenges
The housing market is not only facing upward price pressures but also a stark reduction in available properties. As of December 1, there were less than 10,500 second-hand homes available for purchase nationwide. This number represents a 15% year-on-year decrease and stands as the lowest total on record since January 2007.
Average List Prices by City (Q4 2024)
- Dublin: €442,909 (+9.0%)
- Cork: €347,261 (+6.3%)
- Limerick: €284,138 (+8.2%)
- Galway: €389,742 (+9.0%)
- Waterford: €247,236 (+6.3%)
- Rest of the country: €284,163 (+9.2%)
Expert Analysis and Outlook
Ronan Lyons, an economist at Trinity College Dublin,评论ed on the policy implications of this trend. He stated, “If the goal of policymakers is to ensure stable housing prices, then 2024 has been the least successful year for policymakers since 2017, when prices rose by roughly the same proportion.”
The economist highlighted that this year saw the largest increase in listed prices since 2017, with Dublin now driving price growth at a rate that surpasses other cities.
According to Mr. Lyons, the primary drivers behind the price surge are weak supply and strong demand. Increasing incomes and employment levels contribute to a growing desire for owner-occupied housing, estimated at around 5% per year.
While the number of newly-built homes being transacted is on the rise, this growth is not sufficient to meet demand. Moreover, new constructions have not adequately offset the decline in second-hand homes coming onto the market in recent quarters.
Historical Context and Future Scenarios
To put the current scenario into perspective, while 63,000 second-hand homes were listed for sale in 2022, only 51,000 came onto the market in 2024, a level similar to those seen during pandemic lockdowns.
Mr. Lyons suggests that the incoming government may consider interventions in the mortgage market to improve the mobility of those with fixed interest rates. He emphasized, however, that the fundamental solution lies in boosting the volume of homes being built.
Conclusion
The housing market in Ireland has experienced a notable price surge in 2024, driven by robust demand and constrained supply. As we look to the future, policymakers will need to address these critical issues to ensure housing remains affordable and accessible for all.
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