First-time buyers in Roscommon face €63,000 salary requirement
The research finds that in Roscommon a typical first-time buyer home costs €280,000. Pic: iStock
Roscommon is one of the five most affordable counties in Ireland for first-time buyers, according to new research from Chill Insurance. A single buyer still needs to earn €63,000 to buy a typical first home. That is more than the county's median income of €42,150, leaving a gap of €20,850 between what people earn and what they need.
Roscommon is the fifth most affordable county in the country for first-time buyers, behind only Longford, Leitrim, Mayo and Donegal. Yet the local median income still falls short of what a single buyer would need to borrow for a typical first home.
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 research finds that in Roscommon a typical first-time buyer home costs €280,000. However the median income is €42,150 but a salary of €63,000 is needed to qualify for a mortgage, leaving a gap of €20,850.
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."
