The housing market is experiencing historic lows in stock levels, with only 0.5% of second-hand homes available for sale. This scarcity has led to heightened buyer competition and subsequent price increases. In 2024, second-hand home sales fell by 5.8%, highlighting the pressure on supply. Housing completions, at just over 30,000, are far below the demand for 62,000. This situation considerably impacts prospective homeowners and investors, driving strategic discussions on potential market responses and solutions.
The housing market is experiencing considerable pressures as stock levels for second-hand homes have reached historic lows, exacerbating the ongoing supply and demand imbalance. This situation is reflected in the data from January 2025, where only about 0.5% of the housing stock was available for sale. Such scarcity has not only stunted the market’s fluidity but has also intensified competition among buyers, driving up prices and causing a ripple effect across the housing sector.
Housing supply constraints are at the core of current market dynamics. A notable 5.8% decline in second-hand home sales in 2024 underscores the impact of limited stock availability. This downturn is compounded by a troubling decrease in housing completions, which fell to just over 30,000 in 2024, considerably below the requisite 62,000 needed to meet demand. These figures paint a stark picture of a market grappling with insufficient supply to satiate the burgeoning demand of prospective homeowners, who increasingly find themselves vying for a shrinking pool of available properties.
The persistent growth in home prices further illustrates the pressures on housing supply. Between January and March 2025, second-hand home prices rose by 2.3%, contributing to a year-over-year increase of 7.5%. Dublin has been particularly affected, with prices climbing by 2.6% in the first quarter and 7.6% over the past year. Outside Dublin, the market echoes this trend, with prices rising by 1.9% quarter-on-quarter and 7.3% year-on-year, highlighting a nationwide issue.
Market dynamics are further influenced by investor activity, which continues to shape the landscape. In Q1 2025, investors constituted about 8% of second-hand home buyers, while 30% of vendors were investors selling properties. This dynamic reveals a complex interplay where market challenges, such as dwindling stock and rising prices, influence investor strategies and decisions.
The current state of the housing market demands a strategic response to address the imbalance between supply and demand. With the existing housing supply insufficient to meet demand, market dynamics will likely continue to evolve, necessitating innovative solutions to stabilize and rejuvenate the housing sector.
