Irish families’ wealth is surging, helped by house prices

Smart Money: Household wealth on track to exceed €1tn next year

Irish housing wealth, at €587 billion, is approaching the Celtic Tiger highs. Photograph: iStock

Irish housing wealth, at €587 billion, is approaching the Celtic Tiger highs. Photograph: iStock

If Irish household wealth keeps increasing at current rates, it will exceed €1 trillion in 2022. In the middle of this year, thelatest Central Bank figures showed that net wealth – households’ assets minus borrowings – stood at €935 million, exactly €100 million higher than one year previously and more than €125 million above pre-pandemic levels. This equates to €186,589 per capita, though as the Central Bank points out, this says nothing about the distribution between households.

Covid-19 has hit some parts of the economy hard, but rising house and share prices – and the lack of ability to spend normally during lockdowns – have boosted overall wealth significantly. The additional cash savings may, of course,be transitory. Property is still the bedrock of Irish wealth, but other investments are increasing important. Let’s see the key trends.

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