Significant Increase in Home Prices for First-Time Buyers Over the Past Five Years
New Mortgage Report from BPFI Reveals Alarming Trends

A new mortgage report from Banking & Payments Federation Ireland (BPFI) has unveiled a significant increase in home prices for first-time buyers over the past five years. The data highlights a challenging landscape for aspiring homeowners, accentuated by rising costs and limited availability.
According to the report, the average price of a home for first-time buyers has surged by over 30% since 2019. This escalation is attributed to a combination of factors, including a shortage of housing supply, increased demand, and inflationary pressures. The report underscores the urgent need for policy interventions to address the affordability crisis.
Brian Hayes, CEO of BPFI, expressed his concerns regarding the findings. “The sharp rise in home prices is a clear indication that we need more robust measures to support first-time buyers. The current market conditions are unsustainable and pose significant barriers to homeownership,” Hayes stated. He also emphasized the importance of increasing housing supply and implementing policies to stabilize the market.
Adding depth to the discussion, Dermot O’Leary, Chief Economist at Goodbody Stockbrokers, provided additional insights into the housing market dynamics. According to O’Leary, the stock of available housing has not kept pace with the growing demand, exacerbating the affordability issue. His data reveals that the number of new housing units completed annually has fallen short by approximately 15,000 units compared to the required levels to meet demand.
O’Leary commented, “The gap between housing demand and supply has widened considerably. This imbalance is driving up prices and making it increasingly difficult for first-time buyers to enter the market. We need a concerted effort to boost housing construction and ensure a more balanced market.”
The report also highlights regional disparities, with urban areas experiencing steeper price increases compared to rural regions. Dublin, in particular, has seen some of the highest price hikes, making it one of the most challenging markets for first-time buyers.
In response to these findings, industry experts are calling for a multifaceted approach to address the housing crisis. Suggested measures include increasing the pace of new housing developments, providing more financial support to first-time buyers, and ensuring that planning regulations facilitate rather than hinder housing growth.
The significant increase in home prices for first-time buyers over the past five years serves as a wake-up call for policymakers and industry stakeholders. Addressing this issue will require coordinated efforts to enhance housing supply, stabilize prices, and ultimately make homeownership more attainable for the next generation of buyers.
As the conversation continues, it remains to be seen how these recommendations will translate into action. However, the urgency of the situation is clear, and the need for effective solutions has never been more pressing.
Sources
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- BPFI: Mortgage Market Profile