How Ireland’s property crisis is affecting the real economy
Housing issue is affecting disposable income, mobility, competitiveness and quality of life
House prices nationally have risen 50% since the trough of 2013, while rents are up over 80% since 2010
In 1980, housing accounted for just 7 per cent of household expenditure in the Republic. By 2016, this had increased to 20 per cent, equating to an estimated €52 billion annually, figures from the Central Statistics Office (CSO) show.
The escalating cost of housing has been a central feature of western economies in recent decades. The problems experienced in Dublin – chronic undersupply, young people priced out of the market, increased rates of homelessness – are remarkably similar to those seen in London, Sydney and San Francisco, for example.