‘The social contract has completely ruptured’: Ireland’s housing crisis
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Tathony House, a former factory converted to apartments, in central Dublin.
PHOTO: NYTIMES
DUBLIN – Before sunrise each day, Ms Aoife Diver, a teacher in Dublin, gets into her car and drives for up to 90 minutes from her uncle’s house to the opposite side of the Irish capital.
After school, it is back in the car for the reverse commute. On a recent evening, Ms Diver, 25, sat in stop-and-go traffic, the red of the brake lights in front glowing through the windscreen, as dusk turned to darkness.
It was not always like this. She used to share a house with five friends close to the school where she works in South Dublin. But when her rent and bills reached almost half of her monthly salary in 2023, she knew she had to move back in with family.
“There’s very little housing available, and what is available is way out of my reach,” she said. “Eventually, I probably will have to move somewhere else because I’m never going to be able to afford a house or an apartment on my own up in Dublin.”
The skyrocketing cost of private rentals has left many people struggling to afford housing in Dublin and other Irish cities,
The recent xenophobic riots in Dublin capitalised on the grievances of people struggling to cover their housing costs and exposed to the world the deep fractures that the crisis has created. But the issue is decades in the making, experts say, and has become the driving force in Irish politics.
“Policy created this crisis,” said Maynooth University associate professor of social policy Rory Hearne. “It’s not immigrants, it’s not asylum-seekers,” he added, naming groups the far right accuses of pushing up housing demand. “The housing policy created this housing crisis, and that complete refusal to develop public housing and to build affordable housing.”
While a major issue across Ireland, the housing shortage is felt most acutely in the Dublin region, home to around one-quarter of the country’s population of just over five million. Two-thirds of Irish people aged 18 to 34 still live with their parents – one of the highest rates in Europe according to European Union statistics, which put the continent’s average at 42 per cent.
The average standardised monthly rent in Dublin is now €2,102 (S$3,070), double what it was a decade ago, according to official figures. With average salaries in the capital in 2023 around €3,285 a month, that is out of reach for many.
The biggest cause, analysts say, is a failure by successive governments to invest in social housing, which the local authorities once built for those who could not afford to rent privately. During the Celtic Tiger period in the late 1990s and early 2000s, as Ireland’s economy boomed, private construction exploded and landlords were encouraged to scoop up rental properties as investments, squeezing out less affluent buyers.
Then the market collapsed after the financial crisis of 2008. Half-finished housing projects were abandoned. Homes were foreclosed on. Ireland set up the National Asset Management Agency, which acquired portfolios of delinquent loans and later sold them at discounted prices to so-called vulture funds. For a time, development stopped, and as supply shrank, prices were driven up.
For years, even before the crash, there had been a shift away from social housing built by the local authorities and more of a reliance on the market. As building restarted in recent years, it has been more focused on short-term rental development or luxury builds.
Prof Hearne said that as more people were priced out of home ownership and as social housing dwindled, anyone not already on the housing ladder was increasingly pushed towards the private rental market.
Younger people today are often stuck in high-cost rentals or living with their parents, unable to see a future where they could become home owners, he said.
“I think the social contract has been completely ruptured for younger generations,” Prof Hearne said. “In the past, this was when people were getting married, having kids, and now they’re stuck in their childhood home.”
Lower-income tenants find themselves renting privately with the costs subsidised by the government instead of in dedicated social housing. With limited tenant protections, their situations can be precarious.
“You have the most vulnerable households, lone parents, low-income families who are in the private rental sector, and if they get evicted, they can’t afford the new rent so they become homeless,” Prof Hearne said, noting that homelessness reached record levels in 2024.
People who grew up in the city are being priced out of places they have always called home. Mr James O’Toole, 49, has lived in Tathony House, a former factory converted to apartments in central Dublin, for 14 years. But his landlord plans to sell the property.
Mr James O’Toole at his home in Tathony House, a former factory converted to apartments, in central Dublin. He has lived in his apartment for 14 years.
PHOTO: NYTIMES
Mr O’Toole, a community worker, and his wife, Ms Madeleine Johansson, 38, a local councillor, said they could not afford anywhere else in the city they serve.
The couple and other tenants legally challenged a first eviction order and won. But in December, the landlord handed out eviction notices again.
“It’s like we have to fight whether we want to or not,” Mr O’Toole said. “And I refuse to go down to my parents’ house, their 49-year-old son moving back home.” NYTIMES
