Louth median incomes €30k too low to purchase new dwellings

The household income required for a first time buyer in Louth to purchase a new dwelling was over €30,000 higher than the actual median household income in Louth last year, according to figures from the GeoView Residential Buildings report released this week.

The biannual report was published by GeoDirectory, an organisation that expertises in location address data. GeoDirectory was jointly established by An Post and Tailte Éireann to create and manage Ireland’s only complete database of commercial and
residential buildings.

The report provides a unique and up to date analysis of the Irish housing market and housing stock, as well as reporting on average rent prices across local authorities and an affordability comparison on the cost of renting versus the cost of buying for first time buyers in the Irish market.

Looking at housing stock in Louth, the county had the second lowest proportion of detached dwellings in the country, with 23.9% being detached. It had the second highest proportion of terraced houses however, with 32.2% of the total houses in Louth being terraced. 5.2% of the housing stock in Louth were apartments, apartments being defined as a dwelling which
exists in a building of five or more dwellings.

In the 12 months to December 2023, a total of 805 new addresses were added to the GeoDirectory database, representing a fall of 25% on 2022. 

In Q4 2023, there were 1,104 buildings under construction in Louth - these are buildings as opposed to address points or dwelling units. A total of 1,199 housing commencements were recorded in Louth in the 12 months to November 2023.

With regards vacant addresses as a proportion of the total residential stock, excluding buildings under construction, the
average vacancy rate* in Louth was 2.9% in Q4 2023. The occupied rate in Louth was 96.7%, while holiday homes made up 2.9%. Stock figures excludes homes under construction and derelict.

Looking at transactions and average residential property prices, over the 12 months to October 2023, 1,294 transactions took place in Louth. New dwellings made up 24.4% of the transactions and the average property price was €287,635. 

Standardised average rents in Louth in new tenancies in Q2 2023 was €1,295. With regards affordability for new dwellings in Louth, the median new house price was €363,846. A 90% Loan-to-value (LTV) ratio giving a loan of €327,461, gives a monthly mortgage repayment of €1,659. The calculation assumes a 30 year term with a 4.5% mortgage interest rate.

The means the household income required to purchase a new dwelling in Louth was €81,865. With median household incomes in Louth standing at €51,097, it means a shortfall of €30,768.

For existing dwellings with a median house price in Louth of €245,250, using the same parameters as above, including a 90% LTV, monthly mortgage repayments on a €220,725 were €1,118. For both new homes and existing homes, mortgage repayments were lower than the standardised average rents in Louth in new tenancies of €1,295.

While the household income of €55,181 required to purchase an existing dwelling in Louth was €26,684 lower than that required to buy a new home, it was still higher than the median household income of €51,097 in Louth last year.

Finally, the report also included some data on residential property transactions and average house prices in Dundalk. 619 transactions took place in Dundalk, 14.4% of which were new dwellings, with an average property price of €277,706.

The GeoDirectory Residential Buildings Report presents data on the residential building stock using the GeoDirectory database
of residential address points. Other official data is presented for comparison from the CSO and the Department of Housing,
Planning and Local Government.