First-time property buyers now need a six-figure income to qualify for a mortgage in County Dublin.
First-time buyers in Dublin now need a salary over €100,000 to get on the property ladder, according to a new study.
New research from Chill has found that Dublin is the only county in Ireland where a first-time buyer requires a six-figure income to qualify for a mortgage.
The analysis, which compared CSO data on median first-time-buyer home prices with local incomes, shows that a single applicant in Dublin would need to earn €103,500 to qualify under Central Bank mortgage rules. That compares with a median income in the county of €47,873, leaving an income shortfall of €55,627.
The figures underline the scale of the affordability crisis. While Dublin tops the table, other Leinster counties dominate the least affordable list, with Wicklow and Kildare also requiring salaries close to €100,000.
At the other end of the scale, counties such as Roscommon, Longford and Donegal remain the most affordable - yet even here, salaries of around €50,000 are still needed to get on the ladder.
The affordability gap in Dublin:
• Median price for first-time-buyer home: €460,000
• Median Dublin income: €47,873
• Salary required under mortgage rules: €103,500
• Income shortfall: €55,627
The affordability gap in Roscommon:
• Median price for first-time-buyer home: €225,000
• Median Roscommon income: €40,034
• Salary required under mortgage rules: €50,625
• Income shortfall: €10,591
“The figures show how difficult it has become for first-time buyers across the country. Dublin now requires a six-figure salary, which is out of reach for most single applicants," said Ian O’Reilly, Head of Personal Lines Sales at Chill.
"Even in the most affordable counties, buyers still face a gap between incomes and mortgage requirements. The reality for many is that they need to combine salaries, seek a mortgage exemption or target homes below the county median.”
Key national findings:
• Dublin is the only county where a six-figure salary is required
• No county is affordable for a single buyer on the national median salary of €43,221
• Six counties now require salaries above €80,000
• The top five least affordable counties are all in Leinster
• Roscommon, Longford and Donegal are the most affordable counties
For more information, you can find the full report here.