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Irish House Prices Show Resilience: Remain Near Celtic Tiger Peak

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  Published in House and Home on Friday, January 2nd 2026 at 9:01 GMT by RTE Online

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Irish House Prices Remain Surprisingly Resilient: Still Just 10% Below Celtic Tiger Peak

A new analysis reveals that Irish house prices are proving remarkably resilient in the face of economic headwinds, remaining surprisingly close to the peaks experienced during the Celtic Tiger boom of the early 2000s. The report, published by the Central Statistics Office (CSO) and highlighted by RTE News on January 2nd, 2026, indicates that while a correction has occurred since the frenzy of 2021-2022, prices haven’t fallen as dramatically as many predicted. The current average house price sits just 10% below its Celtic Tiger peak, a figure that challenges forecasts of a more substantial decline and sparks debate about the future trajectory of the Irish property market.

Key Findings & Context:

The CSO data reveals that the national average house price in December 2025 was €364,879. While this represents a decrease from the peak reached in November 2021 (€396,000), it's significantly higher than levels seen before the boom and even during much of the subsequent recovery period. The report emphasizes that the decline hasn’t been uniform across the country. Dublin, traditionally the most expensive region, has experienced a more pronounced correction compared to other areas, particularly in commuter belt locations and rural regions.

This relative stability is attributed to several factors. Firstly, supply constraints remain a significant issue. The chronic undersupply of new housing units, a problem that predates the recent price surge, continues to limit downward pressure on prices. The construction sector has struggled to meet demand for years due to planning delays, material shortages (exacerbated by global supply chain issues), and rising labor costs. While government initiatives aimed at boosting building activity have been implemented, their impact is yet to fully materialize. The report references the Housing For All plan (see [ https://www.gov.ie/en/publication/housing-for-all-a-sustainable-approach-to-architecture-and-building/ ]), which aims to deliver 30,000 new homes annually by 2030, but acknowledges that achieving this target remains a considerable challenge.

Secondly, mortgage rates, while having risen considerably in the past two years following European Central Bank (ECB) interest rate hikes, haven't completely priced potential buyers out of the market. The initial shock of rapidly increasing rates has somewhat subsided as borrowers adjust their budgets and expectations. Furthermore, a significant portion of mortgages are fixed-rate, shielding many homeowners from immediate exposure to higher borrowing costs. However, the article notes that as these fixed rates expire, more households will face increased repayments, which could eventually impact affordability and trigger further price adjustments. The RTE report links to an analysis by DKM Partners ([ https://www.dkmpartners.ie/insights-analysis/ ]) which highlights the potential for mortgage repayment shocks in coming years.

Thirdly, demographic trends continue to support demand. Ireland's population continues to grow, driven by natural increase and inward migration. While concerns about emigration persist due to cost of living pressures, the overall trend remains positive, creating a sustained need for housing. The report also highlights that younger generations are increasingly prioritizing homeownership, despite facing significant financial hurdles.

Regional Variations & Emerging Trends:

As mentioned earlier, Dublin’s correction has been more pronounced than in other areas. This is partly due to affordability constraints and the fact that Dublin prices had risen disproportionately during the boom years. Commuter belt counties like Meath, Kildare, and Wicklow have seen less of a decline, benefiting from continued demand from those seeking larger properties and proximity to urban centers. Rural areas, particularly in the west and southwest, have also demonstrated resilience, driven by factors such as remote working opportunities and lifestyle preferences.

The report also points to emerging trends influencing the market. The rise of remote work has altered housing preferences, with many people seeking homes further from traditional city centers. This shift has fueled demand in smaller towns and villages, driving up prices in those areas. Furthermore, there's a growing interest in sustainable and energy-efficient homes, reflecting increased awareness of environmental concerns and rising energy costs. Properties with high BER (Building Energy Rating) scores are increasingly sought after, potentially commanding premium prices.

Looking Ahead:

The future trajectory of the Irish housing market remains uncertain. While a significant crash like that experienced in 2008 appears unlikely given the current economic context and tighter lending standards, further price adjustments are possible. Analysts suggest that affordability challenges will continue to be a key factor influencing demand. The pace of interest rate changes by the ECB will also play a crucial role. A prolonged period of high rates could dampen buyer sentiment and lead to more substantial price declines.

The government's ability to address the housing supply crisis will be paramount in preventing further inflationary pressures on prices. Increased investment in social housing, streamlined planning processes, and incentives for private developers are all considered essential measures. The success of these initiatives will ultimately determine whether Ireland can achieve a sustainable and affordable housing market that meets the needs of its growing population.

Disclaimer: This article is based solely on information presented in the provided RTE News report and linked sources. It does not constitute financial advice, and readers should consult with qualified professionals before making any investment decisions related to property.