Housing supply at root of affordability squeeze
In his foreword to a report on the affordability of the housing market last summer, Professor Peter Clinch, chairman of the National Competitiveness Council, noted the impacts of the amount of money needed to pay a mortgage on a monthly basis.
"What is clear is that affordability matters for the individual household, for society as a whole, and for national competitiveness. For the individual, or household, buying a house is their single biggest lifetime purchase, while the cost of owning or renting a home takes a large share of household income. From a societal perspective, a stable and functioning housing market that meets the needs of all of the people living in Ireland is an essential contributor to social cohesion," he said.
But we don't have a stable housing market. The lack of supply at a time of economic growth is driving already pent-up demand. As a result of the lack of supply, we don't have a functioning housing market as there isn't enough new stock to sate demand or allow those of a mindset to move or downsize to proceed with their plans.