Kildare first-time buyers now need a six-figure salary to buy a home

A single first-time buyer in Kildare now needs to earn €100,238 to buy a typical first home, according to new research from Chill Insurance. That is more than twice the county's median income of €48,431, leaving a gap of €51,807 between what people earn and what they need.

Kildare has crossed the €100,000 mark for the first time, joining Dublin and Wicklow as the only three counties where a single first-time buyer needs a six-figure salary. A year ago, Dublin was the only one. Kildare is now the third least affordable county in the country.

The research compared the median first-time buyer home price in each county, using the Central Statistics Office's Residential Property Price Index, with median local incomes from CSO earnings data. These figures were then assessed against the standard Central Bank lending rules, under which a buyer can borrow up to 90% of a home's value and up to four times their gross income.

The picture in Kildare:

• Typical first-time buyer home: €445,500
• Median income in Kildare: €48,431
• Salary needed to qualify for a mortgage: €100,238
• The gap: €51,807

Economist Austin Hughes said: “With Irish house prices continuing to increase faster than wages, first-time buyers are finding it increasingly difficult to find a property they can afford, not just in Dublin or major urban centres but right across the country.

“The Chill report emphasises the nationwide nature of the problem would-be homebuyers face. Even allowing for ongoing wage growth, in no county is the typical first-time buyer property accessible at present to the median wage-earner, unless they are in a position to get additional financial support from the State and/or their family.”

Ian O'Reilly, Director of Sales and Operations at Chill Insurance, said: “Kildare is one of just three counties where a single first-time buyer now needs a six-figure salary. Even on the local median income, a single buyer would not earn enough to borrow what they need. For many first-time buyers, closing that gap means saving a larger deposit, buying with another person or looking at State supports such as the First Home Scheme or the Local Authority Home Loan.”

Key national findings:

• No county is affordable for a single buyer on the national median salary of €44,816
• Three counties now need a six-figure salary: Dublin, Kildare and Wicklow
• The five least affordable counties are all in Leinster
• Five counties need salaries above €90,000
• Connacht and Ulster make up most of the affordable list

For the full county-by-county figures, methodology and information on the options available to first-time buyers, see the full report: www.chill.ie/blog/incomes-required-to-afford-homes/.

Full dataset available here.