Leitrim, Longford and Roscommon have emerged as the most affordable places for first-time buyers to purchase a home.
Leitrim is the most affordable place for first-time buyers, taking two-and-a-half years to save for a deposit, according to a survey by price comparison site Switcher.ie.
Dún Laoghaire is the least affordable place and could take almost 28 years to raise a deposit.
Switcher.ie’s research shows the average time it takes to save for a deposit for a mortgage in Ireland is 4.6 years.
The figure is based on average annual earnings, average house prices and average household savings rates.
The median house price for first-time buyers in the 12 months to December was €340,00, Switcher.ie said.
The average first-time buyer drawdown was €282,084.
This is the highest level since records began in 2003.
Despite mortgage activity declining during 2023, first-time buyer mortgages remained buoyant accounting for around 63pc of the market.
Switcher’s affordability index calculates the most affordable areas for joint buyers and sole buyers based on how long it would take to save for a deposit in each various regions.
Roscommon is most affordable for sole buyers, taking two-and-a-half years to save for a deposit on an apartment.
The struggle for new buyers to get on the property ladder is illustrated by the fact that 60pc of Ireland’s new homes were built in the 10 most expensive regions in 2023, Switcher said.
This is in contrast to the cheapest areas only attracting 12pc of new dwellings.
The authors of the affordability index said this was disadvantaging first-time buyers who want to avail of State’s help-to-buy schemes.
Dún Laoghaire, Dublin and Kildare had the most of the new builds in 2023.
But places like Leitrim, Longford and Roscommon only saw a fraction of the new house builds.
Commercial director of Switcher.ie Eoin Clarke said that where people live and work dramatically impacts earnings, savings and how long it takes to gather a deposit.
He said the Midlands counties of Roscommon, Leitrim and Longford were listed among the most affordable.
The western regions of Limerick and Sligo earned their place in the top 10 due to the higher salaries in the region.
Mr Clarke said: “Unsurprisingly, areas in and around Dublin were least affordable for sole and joint buyers.
“Buying with someone else can improve lending limits and significantly reduce the time it takes to save for a deposit and in many circumstances, it’s the only way to get on the housing ladder,” he said.
He said that as Ireland introduces laws to support more flexible working arrangements and the daily commute takes a back seat, the cheaper, rural locations could become increasingly popular for young families and couples buying their first home.
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