Cork is the least affordable county in Munster for first-time homebuyers

Cork is the least affordable county in Munster for first-time buyers, new research has found.

According to insurance company Chill, a single person applying for a mortgage would need to earn €82,837 under Central Bank rules.

That figure compares unfavourably with Cork’s median income of €44,348, leaving an income shortfall of €38,489.

The median is the centre point in a data set and is considered a better indication of that centre than the mean or average, which can be skewed by large or small values.

The company’s study compared median first-time-buyer home prices in every county with median local incomes, applying Central Bank limits of 90% loan-to-value and a maximum loan of four times gross income.

Its findings show that no county in Ireland is affordable for a single buyer on the national median salary of €43,221.

MEDIAN

In Cork, the median first-time buyer home price now stands at €368,166, giving the county the highest salary requirement in Munster.

Nationally, Cork ranks sixth least affordable county behind Dublin, Wicklow, Kildare, Meath and Louth.

Chill's Ian O’Reilly said the study highlighted the dilemma facing many first-time buyers.

“Even in counties with relatively high local incomes, the gap between earnings and what’s required under lending rules is still significant,” he said.

“In most cases, bridging that gap means securing a mortgage exemption, buying with another person or considering state-backed options such as the First Home Scheme.”