A new report has found that first-time buyers need to be earning nearly €100,000 a year to secure a mortgage for a new home in Dublin.
The report, from KBC Bank, also revealed that since 2012 the price of new homes bought by first-time buyers has almost doubled from €200,000 to €380,400.
This means first time buyers would need to be earning an income of around €100,000 a year in order to be able to afford the average Dublin home under Central Bank lending rules.
This huge rise in property prices has, as expected, affected the affordability of homes in Dublin and is pricing people out of the market.
In all four regions of Dublin there was a marked pick-up in new home prices for first-time buyers relative to existing home prices, the report says.
The report also says the drop in purchases of new homes in Dublin by first-time buyers last year “likely reflects the drop in affordability coming from a cumulative increase in new homes prices of 90 per cent from 2012 to 2019”.
