A new tenancy at Ireland’s average rent of €1,839 a month would absorb about 59% of estimated take-home pay at the CSO’s median annual earnings benchmark, while buying a median-priced home requires a substantial deposit and sufficient income to qualify for a mortgage.
Housing affordability is not simply a question of how much people earn. It is also about how much money remains after paying for accommodation and meeting other essential expenses.
Ireland’s latest official figures highlight the scale of that challenge. The Central Statistics Office (CSO)a reported median annual earnings of €46,305 in 2025. Meanwhile, the Residential Tenancies Board (RTB) and Economic and Social Research Institute (ESRI) recorded an average standardised rent of €1,839 per month for new tenancies in the first quarter of 2026.
The CSO also reported that the median price paid for a home reached €399,999 in the 12 months to July 2026.
These measures cover different aspects of the housing market, but together they provide a useful starting point for examining the financial pressures facing renters and prospective buyers.
How much does rent take from earnings?
The CSO’s median annual earnings figure of €46,305 applies to employments active for at least 50 weeks during 2025. It is a measure of annual earnings, not simply the median weekly figure multiplied by 52.
For an illustrative calculation, a single PAYE employee earning €46,305 a year would receive gross monthly earnings of approximately €3,859.
After income tax, the Universal Social Charge (USC) and Pay Related Social Insurance (PRSI), estimated take-home pay would be around €3,140 per month under 2026 tax rules. The actual amount depends on individual circumstances, tax credits, payroll deductions and other factors.
The RTB/ESRI’s average standardised rent for new tenancies was €1,839 per month in Q1 2026. That is equivalent to approximately 59% of the estimated monthly take-home pay in this example.
| Monthly budget | Illustrative amount |
|---|---|
| Gross monthly earnings | €3,859 |
| Estimated take-home pay | €3,140 |
| Average rent for a new tenancy | €1,839 |
| Remaining after rent | €1,301 |
| Rent as a share of take-home pay | Approximately 59% |
Figures are rounded. This is an illustrative comparison between an individual earnings benchmark and a national average for new tenancies, not a measurement of the actual housing costs of a typical household.
The remaining €1,301 would need to cover food, electricity, heating, transport, insurance, communications and other living expenses.
The calculation does not include the potential benefit of the Rent Tax Credit. Eligible single renters may claim a credit of up to €1,000 for 2026, subject to Revenue’s conditions and their income tax liability.
The example also does not mean that every worker earning the median annual amount pays 59% of take-home pay on housing. Some people rent rooms or share accommodation, while others share housing costs with a partner or have different earnings.
Nevertheless, the comparison illustrates how a high new-tenancy rent can place pressure on someone relying on one income.
What does buying a median-priced home cost?
Buying a home involves a different set of financial requirements, starting with the deposit and the ability to qualify for a mortgage.
The CSO’s median residential property price was €399,999 in the 12 months to July 2026. At that price, a buyer providing a 10% deposit would need approximately €40,000 upfront, leaving a mortgage of about €360,000.
| Purchase costs | Illustrative amount |
|---|---|
| Property price | €399,999 |
| Deposit at 10% | Approximately €40,000 |
| Mortgage required | Approximately €360,000 |
| Estimated monthly repayment | Approximately €1,800 |
The repayment estimate assumes a 25-year mortgage term and an interest rate of 3.48%, the Central Bank of Ireland’s reported weighted average rate on new Irish mortgage agreements at the end of July 2026. It is an illustration, not a mortgage offer or a prediction of the rate available to a particular borrower.
Buyers must also budget for legal fees, valuation, stamp duty and other purchase expenses.
Under the Central Bank’s mortgage measures, first-time buyers generally face a maximum loan-to-income limit of four times gross income and a minimum deposit requirement of 10%. Banks may make a limited proportion of loans above the standard limits, but these exceptions are not guaranteed.
For a single person earning €46,305, four times gross income is €185,220. That is substantially below the €360,000 mortgage used in the example.
A single buyer earning the median annual amount would therefore not meet the standard income multiple for that mortgage, even before the lender considers other financial commitments and affordability.
Can two median earners afford a median-priced home?
A household with two earners may have a different position because both incomes can contribute towards a mortgage.
Consider two people each earning €46,305 annually. Their combined gross income would be €92,610.
Under the standard first-time-buyer income multiple, four times that combined income would be €370,440. A €360,000 mortgage would fall within that limit, although approval would still depend on the lender’s affordability assessment and the household having the required deposit and purchase costs.
Using the illustrative take-home estimate of €3,140 per person, the household would have combined monthly take-home pay of around €6,280. A mortgage repayment of approximately €1,800 would represent about 29% of that amount.
This is a different financial picture from a single worker paying €1,839 in rent from one income.
However, the comparison has limitations. The buyer example assumes two earners, a deposit of around €40,000 and a mortgage, while the rental example compares one income with the average rent for new tenancies.
Mortgage repayments also do not represent the full cost of homeownership. Owners must budget for maintenance, insurance, Local Property Tax and other expenses. Mortgage repayments do, however, reduce the outstanding loan balance over time, subject to the terms of the mortgage.
Housing costs vary across Ireland
National averages can conceal substantial differences between locations.
The CSO reported a median property price of €684,411 in Dún Laoghaire-Rathdown in the 12 months to July 2026, compared with €200,000 in Longford.
A 10% deposit on a property priced at the Dún Laoghaire-Rathdown median would be approximately €68,441. The same deposit percentage on a €200,000 property in Longford would amount to €20,000.
The difference in purchase prices affects not only the savings needed for a deposit but also the size of the mortgage required and the income a buyer may need to qualify.
Rental costs also vary by location, property size and type. Someone renting a room may pay considerably less than the national average for a new tenancy, while a household seeking an entire home in a high-cost area may face a much larger monthly bill.
For workers, the choice of where to live can involve a trade-off between housing costs, commuting expenses, access to employment and proximity to family or essential services.
What the figures mean for renters and buyers
The figures highlight two distinct financial barriers.
For renters, the immediate challenge is finding suitable accommodation at a cost that leaves enough income for everyday expenses. High rents can also make it harder to save for a deposit.
For prospective buyers, the challenge includes accumulating savings, meeting mortgage lending limits and demonstrating that repayments are affordable. A household may have sufficient combined earnings to fall within the standard income multiple but still struggle to accumulate the deposit or meet the lender’s affordability requirements.
These calculations do not prove that buying is always cheaper than renting. The outcome depends on the property price, mortgage rate, deposit, rental cost, length of time in the home, maintenance expenses and what a renter might do with money that would otherwise be spent on purchasing a property.
Nor does the CSO’s median annual earnings figure describe every worker. Earnings differ by occupation, sector, working hours and personal circumstances.
What the figures do show is why housing affordability needs to be examined using both income and housing costs, with clear distinctions between individual earnings, household income and the different costs associated with renting and buying.
For Ireland, improving affordability requires attention to the cost of renting, the supply of suitable homes, the financial barriers to buying and the circumstances of households with different incomes.
Sources: Central Statistics Office; Residential Tenancies Board; Economic and Social Research Institute; Central Bank of Ireland; Revenue Commissioners.
