Will housing for all work?

Ireland was in housing crisis before the Covid-19 pandemic, but the situation has worsened due to the pandemic. The housing crisis was caused by high unemployment,then because property is sold preferentially to profitable companies and rents have increased more tha 60% since 2010.

Right now, Ireland’s housing system is not meeting the needs of enough people:

There are not enough houses to buy or rent There is not enough social housing The cost of building housing is rising Too many people are homeless Too much vacant housing stock remains unused

Because of that The Government came up with Housing for All plan. Housing for All is the Government’s new plan how to decrease homelessness in Ireland by 2030, and it was published on 2 September 2021. This plan is intended to support homeownership and increase affordability, increase social housing delivery and support social inclusion, increase new housing supply and adress vacancy and efficient use of existing stock. Government believes it can embed environmental, economic and social sustainability in housing system for future generations. The State will invest more than 4 …

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Newstalk: Talking Point on housing, Saturday 9th April 2016

This week on Talking Point the host Sarah Carey did a great job of examining housing issues with the panel of guests which in studio included Lorcan Sirr of DIT, Dermot Lacey a Labour Party Councillor and Karl Deeter of Irish Mortgage Brokers.

Many relevant points were made about tenure, about supply constraints and solutions as well as discussions about things that don’t often make the press – such as permanent tenures and the like. It is well worth listening back on given the breadth and expert insight of the show.

 

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What about those multipliers?

What do prices look like when considered from a GDP per capita point of view? (in advance I’ll let the GNP crew know that we’ll include that too).

A report from Savills in the UK looked at property prices there and asked if they were becoming more ‘standardized’ versus Europe. The graph below is from the report.

When viewed from this perspective you might think that property prices here are undervalued (implied by the lower multiplier), of course this doesn’t factor in the supply, demand or anything else, it is merely using a reference point. The implications of this might hold in other countries, but from our perspective Ireland is a little different.

In Ireland the multiplier is far higher because of that GDP/GNP divide which is demonstrated in the following graph.

What this shows is that our multiplier is closer to 5.3 than 3.71 when you look at it from a GNP point of view. The …

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