In the current market, there is an increasing want and need for housing in Ireland, especially in populated cities such as Dublin. With this increasing demand, prices of homes and rent are rising each year. One problem that many soon-to-be or want-to-be home owners face now is the inability to effectively save for a home when they are paying high rent fees month after month.
The Central Statistics Office of Ireland notes that the average full time worker made around €45,611, while an average part time worker made around €16,600. Using surveys on these two numbers, we can say that the average worker in Dublin makes around €37,000 per year.
These numbers seem to allow a single person to be able to obtain a mortgage and afford a home, but if you were to add into the equation any additional expenses, such as children, rent or transportation, there would be a significant amount of money deducted from those average numbers.
The national average rent in Ireland is €1,122 per month. If you are interesting in living in Dublin, you may have to add an additional €500 to that number. If you are to live in the city centre of Dublin, your yearly rent can be far greater than €19,000.
With a rent like that and an average yearly salary of €45,611, it can be hard to find money to save on top of all other general living expenses. This is what starts an extremely vicious cycle for potential home buyers.
Without having funds to save, they are less likely to have a hefty savings account and substantial saving transactions. These are two very important aspects in getting a loan, and without strong evidence available to a bank that the lendee can repay their balance will lean to a loan rejection letter.
Without the ability to make a change in their saving habits, this person would be forced to stay in their current residence, move to an area with lower rent, or cut out a significant part of their monthly spending. Some of these options may not even be feasible for the person, leaving them trapped in their current situation.
Overall, there seems to be a vicious trend in the current housing market. Without changes in the near future, there may be less ability to make decisions about where and how you live on your own.