House prices rise 7pc annually as supply pressure drives up costs - report
The rate of increase in house prices nationally has been recorded at 7.3pc, according to the Irish House Price Report published by Daft.ie for the first quarter of 2018.
The most notable price increase has been recorded in Dublin, with the price rise is now slightly above 60pc from its lowest point in 2012.
The average price in Dublin is now €145,000 higher than five years ago. Outside the urban areas, the rise is closer to 40pc.
The housing prices in the first three months of 2018 rose in 53 of the 54 markets, when compared to the final three months of 2017, with only Monaghan recording a slight fall.
However, despite the annual inflation rate being 7.3pc, this is the slowest inflation rate that has been recorded in the Daft report for almost two years.
For the first time in three quarters, the prices rose across all Leinster counties, whereas the prices rose across all Munster counties for the first time since mid-2016.
Ulster counties also recorded an increase in the rates, with the exception of Monaghan.
The report links the reason for an increase in rates to a rise in population, with supply unable to catch up with the demand.
The country’s population is increasing by 50,000 a year, with two thirds of that number being attributed to a natural increase in population.
Amongst other reasons, a change in household dynamics has also been listed as a cause.
“Ireland is in the middle of a century-long process of moving from rural households of roughly four persons to an urban society of two persons per household,” the report states.
“This has huge implications for what we build and how. Supply will be needed in and around the cities - and predominantly in apartment form.”
“It is often said that the mantra in the housing market is "location, location, location,” the report states.
"For housing policy in Ireland, it needs to be "supply, supply, supply".