Thursday 17 August 2017

House price bubble is not a property bubble - yet

Objections to building on underdeveloped land that is already zoned and serviced is putting the economy at risk, says Colm McCarthy

A TALE OF TWO WORLDS: Old Castle House, in Dungar, Roscrea, Co Tipperary, has an
asking price of €395,000 and comes with six bedrooms, three bathrooms and 4.9 acres.
A TALE OF TWO WORLDS: Old Castle House, in Dungar, Roscrea, Co Tipperary, has an asking price of €395,000 and comes with six bedrooms, three bathrooms and 4.9 acres.
Colm McCarthy

Colm McCarthy

Reports released last week confirm something which looks like a house price bubble. It is not, or not yet, a bubble driven by excessive growth in bank credit like the last time round. But nor is it a nationwide crisis in housing affordability.

House prices and rents have risen across the country but accommodation is still affordable for most people in most parts of Ireland. The problem is concentrated in the Dublin region and a few other hotspots around the country, including Cork and Galway cities and some coastal areas with pricey holiday homes.

In most other areas, accommodation is still affordable even for people on incomes below average.

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