Irish house prices undervalued? Shows how misleading stats can be

European Commission report saying houses undervalued relies on outmoded statistics

The ‘bank of mum and dad’, whereby a certain cohort can jump the confines of their own earnings to buy homes, further weakens the relationship between income and house price. File photograph: PA

The ‘bank of mum and dad’, whereby a certain cohort can jump the confines of their own earnings to buy homes, further weakens the relationship between income and house price. File photograph: PA

Ever hear the one about the statistician who drowned in a lake, average depth 12in? Averages can be elucidating; they can also be infuriating.

Central Statistics Office (CSO) data suggest house prices rose by 2.3 per cent between 2005 and 2020 while average incomes, over the same period, rose by 32 per cent. The yo-yoing effect of the crash and the acceleration in property values post-2013 lie hidden beneath the surface of these numbers.

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