State’s affordable housing plan will only make things worse
Similar shared-equity loan scheme in London led to price rises and no impact on supply
The average price paid for a home in Dublin in the 12 months to January was €453,075 – nine times the average full-time salary.
We should probably stop calling our housing problem a crisis. The latter denotes something temporary, something finite. We’ve been dealing with housing-related issues – homelessness, undersupply, soaring costs – for three decades and it’s not obvious what we’ve got to show for it.
“Affordability erosion” – from which everything else radiates – now seems locked into the system. The average price paid for a home in Dublin in the 12 months to January was €453,075 – nine times the average full-time salary. This is roughly the same as it was prior to the 2008 crash and yet there is no credit bubble, no pending collapse.