The pace of growth in Irish house prices is showing signs of slowing, though affordability continues to worsen, according to the latest MyHome.ie property report produced in partnership with Bank of Ireland.
The report for the third quarter of 2025 found that national asking prices rose by 5.7% over the past year, with increases of 4.8% in Dublin and 6.2% outside the capital. While prices remain on an upward trajectory, the report noted that the rate of growth has begun to soften compared with previous quarters.
Despite this moderation, the affordability of homes has become increasingly stretched. The average residential property now costs around eight times the average annual income of €53,000 — the highest price-to-earnings ratio since 2009. The report highlighted that the average property sold in 2025 reached €426,000, underscoring the growing financial strain on potential buyers.
The median asking price for a home nationwide stood at €385,000 in the third quarter, representing a 0.4% decline from the previous quarter but a 5.7% increase compared to the same period last year. Competition for available homes remains fierce, with one in five properties selling for at least 20% above the asking price.
According to MyHome.ie, there are currently about 13,000 properties listed for sale across the country — a figure unchanged from last year but significantly lower than the more than 20,000 listings seen before the Covid-19 pandemic. The report’s author, Conall MacCoille, Bank of Ireland’s chief economist, said that while price growth was moderating, the housing market remained “extremely difficult.”
“There is evidence house price inflation is finally slowing down,” MacCoille said. “However, the pace of price rises is merely softening. The supply shortage remains acute, with property listings still well below pre-pandemic levels.”
The report also pointed to a shift in mortgage activity. First-time buyers have drawn down 27,000 mortgages over the past year — the highest number since 2007. In contrast, the number of mover mortgages, at around 9,200, is close to its lowest level in a decade, indicating that many existing homeowners are staying put due to affordability pressures or limited housing stock.
Looking ahead, the report noted that measures included in Budget 2026 are expected to help increase housing supply, though the full effects may take time to materialize. For now, Ireland’s housing market continues to grapple with limited availability, strong demand, and stretched affordability, even as price growth begins to cool.
