11/28/2005

Young people being priced out of the market?

Susan Mitchell has a look at the issue of house prices in the 26 counties. She seems somewhat spcetical of the Econmists' claim that house prices will fall by 20% in the next 5 years. This is a very important issue for a lot of young people given that any decent house in Dublin these days will cost the guts of half a million euro. Young people are being left with one of two options - rent or don't live in Dublin which isn't a great option considering the percentage of the nation's jobs which are settled in the capital.

I'm far from an economist but, like most people, I hope to own my own house eventually so this is an issue which interests me. According to the article, house-owners have made more than 300 per cent in nine years. I just hope that in future house owning does not become the preserve of only well to do people in the 40s and 50s. Personally I prefer the notion that houses are homes rather than in investments. The issue is whether prices are about to take a dip. Some economists would suscribe to the theory that "What goes up, must come down" but the article disputes this revealing that;

economists have predicted six of the last three recessions!

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