Leitrim is now the second most affordable county for first time buyers, report finds
A single buyer still needs to earn €55,125 to buy a typical first home in Leitrim, which is over €13,000 more than the county’s median income.
Leitrim is Ireland's second most affordable county for First-Time Buyers, according to research from Chill Insurance.
However, a single buyer still needs €55,125. That puts Leitrim second behind Co. Longford.
A single buyer in Co. Leitrim still needs to earn €55,125 to buy a typical first home, which is priced at €245,000 in the county. That is more than the county's median income of €41,162, leaving a gap of €13,963 between what people earn and what they need.
Leitrim also has the lowest salary requirement of any county in Connacht. However, 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.
"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,” according to economist Austin Hughes.
“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," Hughes added.
National findings show that no county is affordable for a single buyer on the national median salary of €44,816. In three counties, a six figure salary is needed.