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.

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.

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