06 Jul 2022

Average net wealth of homeowners almost SIXTY times that of renters, CSO reveals

Average net wealth of homeowners almost SIXTY times that of renters, CSO reveals

The Central Statistics Office (CSO) has revealed a significant difference in the average net wealth of homeowners compared to renters. 

According to the CSO's latest Household Finance and Consumption Survey (HFCS), the median net wealth of households in Ireland who own their own home is €303,900 compared with €5,300 for rented households, meaning homeowners have almost sixty times the net wealth of renters. 

Net wealth, as written in the survey report, is calculated as the value of all assets minus debt. 

The HFCS reveals the wealthiest 10% of all households have a net wealth greater than €788,400, while the bottom 10% have a net wealth of less than €600. 

Households in the Eastern and Midlands region - including Longford, Offaly, Westmeath, Kildare, Dublin, Louth, Meath and Wicklow - have the highest median net wealth of €223,000, compared with €181,000 in the Southern counties of Carlow, Clare, Tipperary, Waterford, Kilkenny, Kerry, Cork and Wexford. 

People of the Northern and Western region - Donegal, Leitrim, Cavan, Galway, Mayo, Roscommon and Sligo - have the lowest median net wealth (€173,300). 

The survey also reveals almost seven in ten (68%) households have some form of debt, including mortgages, loans, credit cards and overdrafts. 

Ninety seven percent of households own some form of financial asset including savings, shares, bonds, investments, and voluntary pensions.

The median value of financial assets owned by households is €13,300. 

According to a statistician with the Income, Consumption and Wealth (ICW) Division, Stephen Lee, the HFCS is the only household survey that collects combined information on the assets, income and debt levels of Irish households. 

Mr Lee said, "It is important to note that the HFCS 2020 results are not comparable with outputs from 2013 and 2018 as this iteration supplemented household survey data with administrative data from the Central Credit Register (CCR).

"Access to the CCR has resulted in more reliable estimates, improved data quality, and enables valuable insights regarding household debt. For example, the debt participation rate is approximately 15 percentage points higher when using the CCR." 

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