Priced out of a home

THE dream of owning a home is fast becoming an unobtainable aspiration for most Northsiders according to figures compiled by a local councillor.

Fianna Fáil Dublin North West general election candidate, Cllr Paul McAuliffe, says a comparative study of data from Daft.ie, Myhome.ie and the Dublin Economic Monitor found some homes in Finglas area are now being sold for prices over €500,000.

Cllr McAuliffe’s analysis follows on from a Daft.ie report earlier this month that shows average rents in the north city are up by 13.4 percent while in the city centre the increase is 13.8 percent.

Rents in these two areas are rising faster than other parts of the city with rents now averaging almost €1,900 – 23 percent higher than their peak in 2008.

In Dublin 9, a two-bed property costs on average almost €1,600 a month while in Dublin 11 the figure is just over €1,450. The figures for Dublin 15 and Dublin 1 are €1,433 and €1,856.

In comparison, a 30-year mortgage in Dublin 9 would cost around €1,152 a month while in Dublin 11 the cost would be €804.

However, with mortgages hard to obtain and a shortage of housing stock, Cllr McAuliffe believes a new property bubble could be on the way as the prospect of home ownership disappears for many.

“The distinct lack of housing development or steady supply of new builds has severely hampered the affordability of living in Dublin.,” he said.

“Based on current trends, house prices in Dublin 11 will increase by another 10 percent by the end of this year and will surpass Celtic Tiger prices within the next 18 months.”

Cllr McAuliffe says Dublin City Council is currently actively purchasing second hand and new units in D9 and D11 to provide much needed public housing.

“However, without an increase in overall supply this is pricing out local families hoping to settle in the area and is putting additional pressure on an already stretched market,” he added.

The Daft.ie Report states that Dublin needs an apartment block of about 200 units to open every week from now until the 2080's to meet demand.

Ronan Lyons, economist at Trinity College Dublin and author of the Daft Report, says rising rents are only a symptom of the bigger problem.

“The cause remains a chronic and worsening lack of rental supply,” he said.

“Policy must focus on dramatically increasing the construction of urban apartments over the coming years, in order to meet both the backlog of demand and the country’s needs over coming years and decades.”