DUBLIN, Ireland: A report issued by the Parliamentary Budget Office has described home ownership among younger Irish and those adults of prime working age as having "collapsed."
The Parliamentary Budget Office said housing costs in Ireland have become "severely unaffordable" for young workers.
Among the reasons attributed to the rise in housing costs in Ireland includes "rising rents" and "surging house prices."
The Parliamentary Budget Office is responsible for delivering economic and budgetary information to TDs and Senators.
In discussing the impact of housing costs on younger Irishmen, the report finds that since the financial crisis of 2012, wage increases have remained below the increase in house prices.
According to the report, from 2012-2020 average wages grew by 23 percent, however house prices grew by 77 percent. This resulted in home ownership being "unachievable", for many young working Irish.
Further, the report indicated that high housing prices, compared to incomes, are "pushing potential buyers out of the market and into rental accommodation, social housing or emigration.".
It was further noted that housing prices rose an average 7 percent per year from 2015-20.
The report also reviewed the impact of significant savings built up by many workers during the pandemic, which "may mean buyers can bid more on homes, without breaking the Central Bank's macroprudential policy, thus pushing up prices."
These new savings have "provided many with the deposit needed for a mortgage," the report stated.
The report also said that housing has become continuously less affordable for renters, as rents are 40 percent higher than ten years ago. Further, in Dublin rents have doubled in the past decade, and remain 20 percent higher than in the rest of Ireland.
"The high cost of housing can lead to deprivation, exclusion, and poverty at the household level, and to lower levels of consumption and economic growth at the national level," the report warned.