Assessing price sustainability in the Irish housing market: A county-level analysis
This QEC Research Note was subject to refereeing prior to publication. The authors are solely responsible for the content and the views expressed.
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This study considers the sustainability of regional housing markets by looking at the rent-to-price ratio or market yield. By sustainability, we mean the extent to which rent-to-price ratios are explained by economic fundamentals. The paper presents a Heat Index to measure market sustainability over time and across counties.
These indicators suggest that house price levels across the country do not display signs of being unsustainable and are broadly in line with economic fundamentals. However, continued monitoring of differences in market dynamics on a regional basis are required going forward.