Recent data from the Banking and Payments Federation Ireland (BPFI) unveils a changing trend in homeownership, with the median age for first-time buyers now standing at 35 years old. The report highlights that just one-in-five first-time buyers are under the age of 30.
Despite reaching a record-high median income of €82,000, prospective homeowners are grappling with an average mortgage price of €270,000. Notably, more than half of all first-time buyer mortgage drawdowns involve “high-value” mortgages exceeding a quarter of a million euros, marking a historic peak according to both BPFI and the Department of Housing.
BPFI Chief Executive Brian Hayes emphasised the significance of the report, stating that it provides crucial insights into Ireland’s mortgage market, presenting a “very clear picture of the market across many dimensions.” Hayes pointed out that over half of first-time buyers secure loans exceeding €250,000 while having household incomes of €80,000.
In Dublin, where the housing market is particularly dynamic, the median income for first-time buyers has surpassed €100,000, indicating a notable increase of approximately €12,000. The data further reveals that mortgages for first-time buyers in the capital have climbed to €475,000 for new builds and €387,400 for existing homes.
Sinn Féin TD and Finance spokesperson Pearse Doherty commented on the data, asserting that it exposes the profound impact of the government’s housing crisis on aspiring homeowners. Doherty highlighted the resulting burden on first-time buyers, who now contend with higher debt and increased monthly repayments due to the surge in mortgage prices.
While loan terms have remained stable, with the median mortgage term for first-time buyers holding steady at 30 years since at least the first six months of 2012, the report underscores the persisting challenge for prospective homeowners in the face of evolving market dynamics.
Irish Samachar English News