House prices in Dublin have surpassed the level they reached at the top of Ireland's housing bubble. Official figures suggest that Dublin prices are now 0.6% higher than during the February 2007 peak. The median house price in the Dublin region in July was €458,000, a 10% increase compared to July last year. Outside Dublin prices have been above the 2007 peak for almost two years and are now 13.3% higher than in 2007. The median price for the country as a whole is now €340,000.
That ranges from €171,000 in Longford to €630,000 in Dún Laoghaire-Rathdown, the council area which covers some of the ritziest areas of south Dublin.
Property prices increased rapidly in Ireland's Celtic Tiger era as the country became more prosperous. That initial growth was then fuelled by easy credit from poorly regulated banks which boosted a speculative frenzy.
That bubble and its bursting contributed to Ireland's banking crisis and a deep recession. House prices collapsed and reached a trough in 2012 and 2013 but recovered as the economy grew. Dublin prices have risen by 149.1% from their February 2012 low, whilst prices in the rest of Ireland are 160.6% higher than at the trough, which was in May 2013.
Housing availability and cost have become major political and social issues in Ireland. Lack of building during the recession has contributed to a weak supply of new housing. That has had a particular impact on younger people who face high rents and little prospect of owning a home. Recent research suggests the country needs to build at least 35,000 homes every year to keep up with population growth.
The report from the Economic and Social Research Institute (ESRI) said that in a "high migration scenario" the number of necessary new homes could be as high as 53,000 per year. The government’s current target is 33,000 but it has been known for some time that is too low.
