Young people ditching home-ownership dream and applying for social housing instead

Surging house prices have prompted large numbers of younger people to ditch their plans to buy a private home and instead apply for social housing.

The dream of their own place is fading for people in their 20s and 30s as they are struggling to save for a deposit, despite large numbers getting help from parents.

Most people surveyed are worried that property prices will continue to rise, squeezing more and more younger buyers out of the market, according to the latest PTSB “Reflecting Ireland” research.

Almost half of people who are in the market to buy a home are now considering applying for social housing, according to a survey carried out by Core Research for PTSB.

When it comes to those between the ages of 18 and 24, a total of 61pc say they will apply for social housing instead of trying to buy a home.

Surging prices caused by a chronic deficit of new homes under construction are causing younger people to abandon their home ownership plans.

The survey found 21pc of those seeking a home say they are now considering social housing for the first time because the private home ownership market has become so challenging.

Figures out earlier in the week from property portal MyHome.ie show Irish house prices have risen so much in the last few years that a typical property now costs eight times the average income of €51,000.

This is their most stretched afford­ability level since 2009. The average Irish residential property transaction was €404,000 in the first three months of the year, MyHome found.

"A third of prospective buyers have some savings but not enough. Twenty-seven per cent of potential buyers have yet to start saving."

Affordability is also being impacted from the fact that the average deposit is now around €50,000.

PTSB’s survey, released ahead of the PTSB Ideal Home Show this weekend, confirmed that first-time buyers are struggling to save for a deposit.

Only four out of 10 first-time buyers have saved enough to put down on a home. They need a minimum 10pc of purchase price as a deposit.

A third of prospective buyers have some savings but not enough. Twenty-seven per cent of potential buyers have yet to start saving.

Home buyers are increasingly turning to family for help. A third of those in the market to buy a home say they are having to rely on that course, through gifts or inheritances, to help them raise the money for a deposit.

The scramble to buy is illustrated by the revelation from MyHome.ie this week that only 10,800 homes were listed for sale on its site at the end of last month, a new record low.

A majority of respondents told Core Research that owning a home is “very important” to them.

Long-term renting is not seen as a preferable option by most people in Ireland, with only a third saying it suits them.

However, this rises to over half of 18- to 24-year-olds.

"Many existing homeowners are unaware of savings they can make if their home has a high building energy rating (BER)"

Despite the challenge in saving for a deposit, 10pc of first-time buyers say they are planning to spend more than €650,000 on their first home.

Sixty-one per cent say they will spend less than €350,000.

Leontia Fannin, the chief sustainability and corporate affairs officer at PTSB, said the survey was evidence of a shift in attitudes towards housing and homeownership, as well as evid­ence of the struggles first-time buyers are facing.

Claire Cogan, a behavioural scien­tist at BehaviourWise, said the research paints a difficult picture for first time buyers, many of whom are struggling to save and are frustrated at having to wait longer to begin living independently.

More generally, it shows continued resilience among Irish consumers in response to economic challenges.

The survey also showed that many existing homeowners are unaware of savings they can make if their home has a high building energy rating (BER) or a low loan-to-value (LTV) ratio.

Only 28pc know they can reduce mortgage repayments by having a high BER rating and just 39pc of homeowners know what their BER is.

Over half (53pc) of homeowners know that their LTV could reduce repayments, but less than half know what their loan to value is.

Source: Charlie Weston, Irish Independent, 11th of April 2025.