Statement by Marian Finnegan, Managing Director, Sherry FitzGerald.
August 15th, 2023
The latest bi-annual analysis conducted by Sherry FitzGerald Research reveals a critical shortage in available housing stock, which has now reached a historic low. The data highlights that the number of second-hand properties listed for sale across the country in July 2023 was a mere 13,750. This figure represents only 0.7% of the entire private housing stock in Ireland.
This means that the stock of properties available for sale has fallen by a significant 10.2% since July 2022. Moreover, when contrasted with summer 2020, a time marked by the COVID-19 pandemic, the decrease is even more pronounced at 24%.
Marian Finnegan, Managing Director of Sherry FitzGerald, underscores the urgency of the situation, stating; “This scarcity in housing options further exacerbates the ongoing imbalance between housing demand and supply within Ireland. Moreover, it further intensifies the challenges faced by individuals and families seeking suitable housing.”
Of particular concern is the shortage of housing in the lower price categories, with the sub-€200,000 range experiencing the most significant decline. Only 2,900 properties within this price bracket are available for purchase nationwide, reflecting a sharp 55% drop in just three years. This shortage disproportionately affects those with single or lower incomes, underscoring the pressing need for affordable housing solutions.
Highlighting the broader implications, recent research from the Economic and Social Research Institute (ESRI) reveals that homeownership rates among individuals aged 25–34 have plummeted from 60% in 2004 to a mere 27% in 2019. This alarming trend underscores the necessity of establishing accessible housing options across the country.
The analysis conducted by Sherry FitzGerald Research indicates substantial declines in housing stock across all four provinces since 2020. Ulster experienced a 34% reduction, Connacht saw a 32% decrease, Munster encountered a 28% decline, and Leinster witnessed an 18% drop over the three-year period.
Rural areas are disproportionately impacted, with counties like Carlow, Donegal, Mayo, and Westmeath all experiencing stock decreases exceeding 40% within a three-year span. It is essential to recognise that Carlow, Mayo, and Westmeath collectively completed fewer than 1,500 new dwellings in the same period up to the end of Q2 2023. Additional counties, including Galway, Kerry, Longford, Offaly, Tipperary, Wexford, and Waterford, also registered stock reductions of over 30% since 2020. Addressing this issue requires not only increasing housing production but also ensuring equitable distribution to rejuvenate rural and regional housing markets.
Focusing on Dublin, the available stock for sale in July 2023 totalled 3,542 units or 0.7% of the entire private housing stock, marking a 3% reduction from 2020. Stock levels vary across the four local authorities, with Fingal experiencing a 13% decrease over the three-year period. South Dublin observed a 3% reduction, while Dun Laoghaire-Rathdown remained stable. Meanwhile, Dublin City noted a 1% increase compared to summer 2020.
In conclusion, Ms. Finnegan emphasised, "As the housing market grapples with unprecedented challenges, collaborative efforts are crucial to ensure sustainable solutions that meet the housing needs of all segments of the population in all locations.”
ENDS
For any further information, please contact:
Jill O’Neill Marian Finnegan
Director of Marketing & PR Managing Director
Sherry FitzGerald Group Sherry FitzGerald
Ph: 01 2376 6324 / 086 252 3277 Ph: 01 237 6341 / 086 814 8251
