4 in 10 people don’t expect to own a home outright by the time they retire
Men in Ireland are almost twice as likely as women to say they don’t want to own a home whilst more than one in ten (11pc) Irish people said they have no interest in owning a property.
According to a survey commissioned by insurance broker Gallagher in Ireland[1], more than half (54pc) of people aged between 25 and 34 expect to still have a mortgage by the time they retire.
When participants were asked if they believe they will own their home by the time they retire, it was found that:
- Overall, only six in ten (58pc) expect to own their home outright by the time they retire.
- Around seven in ten (67pc) people in Munster are the most likely to believe they’ll own their home outright when they retire.
- More than six in ten (63pc) Irish women expect to own a property outright by the time they retire – compared to just over half (53pc) of Irish men.
- People living in Dublin are least likely to believe they’ll own their home outright in retirement – with just over half (52pc) holding this view. People in Dublin were also the most likely to say they’ll have a “significant” mortgage (13pc) in retirement compared to the national average of 9pc.
- One in seven men (14pc) and about one in twelve women (8pc) said they don’t ever want to own a property.
Commenting on the survey findings, Jonathan Roche-Kelly, Director of Financial Services for Gallagher in Ireland said:
“In recent years, there has been a shift away from Ireland’s traditional pattern of home ownership.
“Our survey findings suggest that for most Irish people, home ownership is still a goal, but it is interesting that a significant proportion of the population don’t ever want to own their own home. Today’s record house prices mean many people are simply priced out of the house market and maybe can’t visualise home ownership as a result.”
The recent Census highlighted the extent of the fall in home ownership rates in Ireland, with rates falling from 80 per cent in 1991 to 66pc in 2022[2]. The increase in house prices in recent decades is considered to be one of the factors which has contributed to this decrease in homeownership. House price inflation has continued to be strong in recent years, with Irish house prices now 15.2pc above Celtic Tiger boom values[3].
Further highlights from the research revealed:
- Almost one in three (31pc) Irish people expect to be still repaying a mortgage come retirement, with over a third of this cohort anticipating their mortgage payments will still be “significant” at that stage.
- Just 6pc of those who have a mortgage expect to have a “significant” amount left to repay by the time they retire, but this rises to 17pc of those who currently don’t have a home loan.
Mr Roche-Kelly said:
“It is worrying that almost one in three Irish people expect to be still repaying a mortgage in retirement – this again could be due to today’s record house prices as well as the trend of people buying home’s later in life.”
The latest CSO figures show that the median age of a house buyer is now 39 – up from 35 in 2010[4]. The recent Census found that the age at which the majority of Irish householders own their dwelling outright is increasing – up from 56 years in 1991 to 59 years in 2022[5].
Mr Roche Kelly added:
“Of course, it is financially prudent to have a mortgage cleared before you retire if you can afford to. Failure to do so will see mortgage debt eat into your retirement income, which is already likely to be much lower than the income earned while still working. This could in turn make it harder for you to make ends meet in retirement and could even mean you need to postpone your retirement. Other advantages of owning your own home outright come retirement include security of tenure and the financial freedom that comes with being mortgage or rent free.”
ENDS
[1] Conducted by iReach
[3] Irish house prices are now 15pc above Celtic Tiger boom values – as per Residential Property Price Index October 2024, published 18 December 2024
[4] As per CSO’s Characteristics of Residential Property Purchasers – Estimates of Mortgage and Non-Mortgage Transactions 2021, published in April 2023
[5] As per Census of Population 2022 Profile 2 – Housing in Ireland
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