House Prices in Ireland Continue to Rise Sharply

House prices across Ireland have surged by 35% since the onset of the Covid-19 pandemic. In Dublin, property prices are increasing by approximately €1,000 per week, posing significant challenges for prospective buyers. The primary factor driving these increases is a severe housing shortage, with the number of available second-hand homes at its lowest since 2007. Economist Ronan Lyons emphasizes the urgent need for increased housing construction to address the supply-demand imbalance. Regional variations exist, with Dublin remaining the most expensive area. The government is at odds with financial authorities over proposals to relax lending rules for developers, a move criticised by the Labour Party as a return to past policy failures. The Central Bank maintains that planning issues, rather than financing, are the main impediment to housing supply. Despite the introduction of new social housing units, the government is projected to miss its housing delivery targets in the coming years.