‘We’ll never be able to afford to buy home’

MORE than a third of young Irish people believe they will never afford their own home, a poll says.

A survey of 5,372 people by AA Insurance found that just over 33% of people aged 35 or under either fully agree or somewhat agree with the statement that they will never own a home.

However, more than 50% of people in the same age group believe that buying a home is an important life milestone, suggesting that they share with older generations the dream of home ownership.

AA director of consumer affairs Conor Faughnan said: ‘Housing has long been a concern for Irish people and for our government, but it does appear that people are becoming more sceptical of their ability to ever own their own home, with this being particularly true for younger generations.

‘Even among those under 35, there is a general consensus that home ownership is an important milestone, which would seem to imply that the appetite to purchase property is there but that the opportunities to do so are not.’

The survey found that 9.2% of all respondents fully believed they would never own a home with a further 6.7% somewhat agreeing that they will never own a home.

According to Mr Faughnan, in previous decades, it was common for people approaching their mid-30s to start thinking about buying a home.

However, rising property costs, as well as a lack of housing supply, is forcing many people in this age bracket to question if they will ever own a home.

The survey shows that 53.12% of people across all age groups agreed completely with the notion that owning a home is an important milestone in life. Among the under-35 age group, 56.13% agree.

Mr Faughnan said: ‘If and when you get there, purchasing your first home is a major moment in anyone’s life and, in all likelihood, represents the biggest purchase that most of us will ever make.’

According a recent analysis by the Goodbody BER housebuilding tracker, the housing supply deficit affecting Irish families and would-be homeowners will continue on into 2020 as a result of a disappointingly low level of apartment building.

The analysis, published last month, forecast that there will be 18,000 completions this year, which is about half the estimated level of housing demand.

The estimated demand, according to a number of economic commentators, is approximately 35,000 units per year.