“Low housing stock levels continue to impact Ireland’s housing market.”
Statement by Marian Finnegan, Managing Director, Sherry FitzGerald.
August 20th, 2024
The latest bi-annual analysis conducted by Sherry FitzGerald Research has revealed that Ireland's critical shortage of available housing stock continues, with the number of second-hand properties for sale in July 2024, totalling just 12,785. This represents a mere 0.6% of the entire private housing stock in the country. The analysis highlights a 7% decrease in available properties since July 2023, and an even sharper 29% decline compared to summer 2020, during the height of the COVID-19 pandemic.
While the number of second-hand properties listed for sale has increased slightly since the start of 2024, when a record low of 11,050 properties was recorded, this marginal improvement does little to alleviate the acute shortage of housing stock. The severe scarcity of available second-hand homes continues to impact the market, with affordability remaining a key concern.
Marian Finnegan, Managing Director of Sherry FitzGerald, emphasised the gravity of the situation, stating: "The shortage of housing in the lower price categories is particularly alarming. In the sub-€200,000 range, the decline has been the most pronounced, with only 2,370 properties currently available nationwide, a staggering 63% drop since 2020. Similarly, the availability of properties in the €200,000 to €350,000 price range has decreased by 38%. This disproportionally affects individuals with single or lower incomes."
The analysis also sheds light on the geographic disparities in housing availability. All four provinces have experienced substantial declines in housing stock since 2020. Ulster saw the largest reduction at 41%, followed by Connacht with a 35% decline, Munster with a 33% drop, and Leinster, which recorded a 23% reduction over the past four years.
Rural areas have been disproportionately affected, with counties such as Kerry experiencing a 48% decline in available housing stock, followed by Donegal (46%), Longford (44%), and Mayo (43%). Other counties, including Roscommon, Leitrim, Cavan, and Wexford, also saw stock reductions of over 30% since 2020. This trend underscores the ongoing challenges facing rural and regional housing markets.
Ms. Finnegan commented on the situation, stating: "The severe shortage of housing stock in rural Ireland is not a new issue. To rejuvenate these areas, it is crucial to not only increase housing production but also ensure that stock is delivered across the country, particularly in areas that are hardest hit."
Turning to Dublin, the country's capital also faces significant challenges, with available stock for sale in July 2024 amounting to 3,300 units, or 0.6% of the city’s private housing stock. This marks a 10% reduction from 2020, when 0.9% of private housing stock was advertised for sale. The analysis further reveals varying levels of stock reductions across Dublin’s local authorities, with Fingal experiencing the steepest decline at 19%, followed by South Dublin (9%), Dublin City (7%), and Dun Laoghaire-Rathdown (5%).
In closing, Ms. Finnegan reiterated the need for decisive action: “As the housing market grapples with unprecedented challenges, collaborative efforts are crucial to ensure sustainable solutions that meet the housing needs of all segments of the population in all locations.”
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For any further information, please contact:
Jill O’Neill Marian Finnegan
Director of Marketing & PR Managing Director
Sherry FitzGerald Group Sherry FitzGerald Residential
Ph: 01 237 6324 / 086 252 3277 Ph: 01 237 6341 / 086 814 8251
