Irish Housing Market Shows Signs of Cooling, But Supply Remains a Key Issue
The Irish housing market is exhibiting early signs of stabilization, with price increases slowing down, according to the latest report from property website Daft.ie. However, a persistent lack of supply, particularly outside of urban areas, continues to exert upward pressure on prices.
Slowing Price Growth
Nationally, home list prices rose by 3.7% in the past year, marking the slowest rate of increase since late 2023. RTE reports this compares to a 5.5% increase in the year to December. Transaction prices also reflect this trend, increasing by 5.6% year-on-year to March, down from 7.4% in December. Between December and March, transaction prices were broadly stable.
Regional Disparities
The slowdown is most pronounced in urban areas. In Dublin, list price inflation slowed to 2.5% in the year to March, with transaction prices even falling slightly in the first quarter. Other major cities experienced a similar pattern, with list prices rising by just 0.7% year-on-year. However, outside of these urban centers, inflation remains significantly higher, ranging from 5% in Leinster to 8% in Connacht-Ulster, due to more constrained supply.
Average Prices and Supply Levels
As of the first quarter of 2026, the average price of a three-bed semi-detached home nationally stands at €435,000. Daft.ie data indicates that average prices are 42% above pre-Covid levels but still 9% below their peak during the Celtic Tiger era.
While the number of second-hand homes for sale nationwide has increased by 6% year-on-year to just over 10,100, it remains less than half the pre-pandemic level of over 26,000. This modest improvement is largely concentrated in urban markets, with supply remaining severely constrained in many rural areas.
Expert Analysis
Professor Ronan Lyons, author of the Daft.ie report and a professor in Economics at Trinity College Dublin, notes that the market is becoming a “two-speed market,” with stabilization occurring first in areas where supply is improving. He emphasizes that increased availability in Dublin, driven by activity in the second-hand market, is easing competition among buyers. However, he also points out that Ireland’s housing market “remains fundamentally undersupplied.”
The Need for Increased Housing Supply
According to Professor Lyons, addressing the housing deficit requires a significant increase in construction. The number of new homes built each year needs to approximately double across all housing types – owner-occupied, rental, and social housing – to achieve long-term balance.
Regional Price Variations
The average list price in Dublin is €626,000, while in other cities, it is €399,000. In Leinster (excluding Dublin), the average is €372,000, €311,000 in Munster (excluding cities), and €252,000 in Connacht-Ulster (excluding Galway city).