Property prices ‘to keep rising’ as shocking increase in cost of typical home in 10 years revealed

Latest figures show prices were up by close to 9pc in the year to last December.

The typical price of a home across the State is now €200,000 more expensive than in 2013, according to Central Statistics Office (CSO) figures.

Economist Austin Hughes said prices would continue to rise this year, but at a slightly slower place. He said a ­chronic shortage of supply would outweigh ­affordability issues for homebuyers.

“The irresistible force of limited supply is running into the immovable object of affordability limits, meaning prices continue to increase but at a gradually slowing pace,” Mr Hughes said.

The CSO’s Residential Property Price Index increased by 8.7pc in the 12 months to last December.

This is a slight slowdown from the rate of increase from the previous month.

But it was the 16th month in a row of rising values.

Dublin values were up by 8.3pc in the year, and prices outside Dublin rose by 9pc.

In December, prices were up by 0.5pc compared with the previous month, the CSO said.

The median, or mid-point, price paid by households for a residential property was €355,000 for last year as a whole.

Compared with 2023, the typical price of a home is up €27,500.

Last year’s price of €355,000 is compared with €259,000 in 2019, and €155,000 in 2013.

This means typical prices are up by €200,000 in just over a decade.

In the year to December, the lowest median price for a dwelling was €182,250, in Longford.

The highest median price was €660,000, in Dún Laoghaire-Rathdown.

Mr Hughes said the slight slowdown in annual house-price inflation probably reflects increasing affordability strains.

“However, limited supply and a particular shortfall in existing homes mean prices continue to climb and are likely to continue to move up, albeit at a slower pace in 2025,” he added.

He said some pull-back in the relatively high-earning multinational sector and broader uncertainty should also act to limit price increases.

Mr Hughes said the median price of a property in December was 7.5 times average annual earnings.

CSO statistician Niall Corkery said: “Residential property prices rose by 8.7pc in the 12 months to December 2024, down from 9.6pc in the year to November 2024. In Dublin, residential property prices saw an increase of 8.3pc, while property prices outside Dublin were 9pc higher in December 2024 when compared with a year earlier.”

In December 2024, 5,177 dwelling purchases by households at market prices were filed with the Revenue Commissioners, up 2.3pc when compared with the 5,063 purchases in December 2023.

Residential property prices of new homes in the last three months of last year were 5.2pc higher than in the corresponding quarter of 2023. Second-hand homes were 10.5pc higher than in the corresponding quarter of 2023.

Continuing rises in property prices come as thousands of homes remain vacant despite a national housing crisis.

New figures show that close to 81,000 residential properties were vacant in the final three months of last year.

This has barely changed since the same three-month period in 2023, ­according to data compiled by An Post’s data company GeoDirectory.