Annual house price growth steady at 6.2% in May - CSO

Annual house price growth remained steady at 6.2% in May, according to new figures released by the Central Statistics Office (CSO). The data shows that the median average price of buying a home nationwide reached €395,000 in May, marking another month of consistent price increases. This figure reflects a 6.2% rise compared to the same period in the previous year, maintaining the same rate as in April. The CSO report indicates that residential price inflation has been gradually slowing down since peaking at 10.1% in August 2024. In Dublin, property prices climbed by 4.7% year-on-year, while outside the capital, they surged by 7.3%. The national median price for Dublin stood at €500,000, with the most expensive area being Dún Laoghaire Rathdown at €685,325 and the least expensive in Fingal and Dublin City at €480,000. Outside the capital, the most expensive region was Wicklow at €470,000, while Longford had the lowest median price at €198,000. Property prices nationally are now 25% higher than their peak in April 2007, during the height of the property boom. Since the collapse of the housing market in 2008, prices have rebounded significantly, with national prices increasing by 180.7% from their lowest point in 2013. Dublin prices have risen by 172.8% since their trough in February 2012, while prices in the rest of Ireland have climbed by 197.2% from their lowest point in May 2013. Kate English, chief economist at Deloitte Ireland, commented on the latest figures, highlighting the ongoing imbalance between demand and supply in the housing market. She noted that although price growth has slowed in Dublin, it persists elsewhere in the country. “Prices are still rising around much of the country,” she said, emphasizing that the pressure on buyers remains high despite the moderation in growth rates. Inflation has also played a role in influencing property costs, with material costs rising by 3.1% in May, the highest increase since August 2023. English pointed out that there has been positive momentum in new housing supply, with commencements in the first five months of the year surpassing 13,100 units, the second-highest volume recorded in the past decade for this time of year. New dwelling completions in the first quarter of 2026 were also among the highest levels seen during the current development cycle. Looking ahead, English highlighted that the government will soon receive new dwelling completion figures for the first half of 2026. These figures will be crucial in determining whether the housing targets for the year can be met. She stressed that at least 20,000 completions would be necessary to achieve these goals, underscoring the importance of continued progress in housing supply.