The typical, or median, income of first-time buyers of new properties in Ireland is now over €90,000, according to a report by the Banking and Payments Federation Ireland (BPFI).
The banking lobby group’s latest review of the Irish mortgage market indicated that the “median basic household income” of first-time buyers of existing properties in the second half of last year was €74,000 per annum. This rose to €91,000 for first-time buyers of new homes and to €109,000 for mover purchasers.
The median income of first-time buyers of new homes in Dublin was €103,000.
Borrower profile
With the average full-time salary for an individual in the State put at just under €50,000, the figures highlight the affordability gap at the heart of the property market here.
The BPFI’s report looked at the profile of borrowers, their loans and property types and how this has changed since before the pandemic.
It found the median value of properties purchased by first-time buyers excluding so-called self-builds rose by €35,000 to €320,000 between 2020 and 2022. At the same time, the typical mortgage drawn down by a first-time buyer increased by only €24,000 to €254,000.
This was indicative of “a more prudential approach by borrowers” and reflected increased savings during the pandemic, the banking group said.
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The median value of properties bought by mover purchasers last year was €445,000, up from €367,000 in 2020 while the median value of loans taken out by this category of buyer was €395,000. Mover purchasers tend to purchase more expensive homes and have larger loans, the BPFI said.
Median monthly mortgage repayments nationally stood at €1,089 for first-time buyers (excluding self-builds) and €1,406 for mover purchasers.
The report noted that first-time buyers continued to dominate the mortgage market, accounting for 14,018 of 30,739 mortgage drawdowns in the second half