THE PRICE OF an average residential property is now eight times more than average earnings, the highest it has been since 2009, according to a new report.
MyHome.ie’s report on asking prices for houses in quarter three of 2025, produced alongside Bank of Ireland, was released today.

It found that one-fifth of all properties are being sold for 20% or more above the asking price.

Annual asking price inflation was 5.7% nationwide. Up by 4.8% in Dublin and 6.2% in the rest of Ireland.

The average residential property sold in 2025 had a price of €426,000, eight times the average earnings of €53,000.

Inflation was highest in Co Roscommon (14.86%) and lowest in Co Monaghan, where it reduced by 4.76%.

Inflation is at the lowest it has been in two years, which the report contributed to stretched affordability and first-time buyers availing of the Central Bank’s increased borrowing limits.

House prices across Ireland at the end of September 2025. MyHome.ie MyHome.ie

As well as competition and high prices, the report suggested people are moving less, painting a tough picture for first-time buyers.

It said: “A chasm now exists between the high number of first-time buyers looking to buy and existing homeowners unwilling to move”.

It also found that housing completions are at their highest level since the Celtic tiger era. 32,700 units were completed between June 2024 and 2025.
MyHome.ie forecast 34,500 home completions this year, citing the VAT reduction on the sale of completed apartments introduced in the Budget.

The report predicts that house prices are now expected to rise in line with average earnings, at 5%.

‘Merely softening’

The author of the report, Conall MacCoille, Chief Economist at Bank of Ireland, said: “The MyHome report provides evidence house price inflation is finally slowing down. But the pace of price rises is merely softening.”

“The market is still extremely difficult; there are currently just 13,000 properties listed for sale on MyHome, flat on the year and still down from the levels exceeding 20,000 seen prior to the Covid-19 pandemic.”
 
MacCoille said that even though affordability was becoming more stretched, competition in the market was still strong.

“The average residential property sold in 2025 had a price of €426,000, eight times the average earnings of €53,000. By this metric Irish house price-to-earnings are now at their most expensive level since 2009.
 
“However, such is the level of competition among homebuyers that the typical property in September was sold 8% above the original asking price, a fresh high. A fifth of transactions was settled at 20% or more above asking.”
 
He said that despite the difficult market, home completions represented a silver lining, rising to 32,700 in the twelve months to June, the highest level since the Celtic Tiger era.