First-time buyers in Mayo now need to earn €57,375 to buy a home - study
A single first-time buyer in Mayo now needs to earn €57,375 to buy a typical first home, according to new research from Chill Insurance.
That is more than the county's median income of €43,995, leaving a gap of €13,005 between what people earn and what they need.
The statistic is based on the median price of €255,000 for a house in the county.
That means the income required to borrow 90% of property value is €57,375.
The research compared the median first-time buyer home price in each county, using the Central Statistics Office's Residential Property Price Index, with median local incomes from CSO earnings data.
These figures were then assessed against the standard Central Bank lending rules, under which a buyer can borrow up to 90% of a home's value and up to four times their gross income.
Connacht and Ulster account for most of the more affordable areas, alongside Longford. In counties such as Longford, Leitrim and Mayo, a salary below €58,000 could be enough to borrow the amount needed.
Even so, the lowest requirement of all, Longford at €48,375, still sits above the national median wage.
Economist Austin Hughes said: "The Chill report emphasises the nationwide nature of the problem would-be homebuyers face.
"Even allowing for ongoing wage growth, in no county is the typical first-time buyer property accessible at present to the median wage-earner, unless they are in a position to get additional financial support from the State and/or their family.
"With would-be buyers in Dublin and surrounding counties now needing around twice the typical wage in those areas, and approaching that in Cork and Galway, this 'purchase gap' is growing and spreading in a worrisome manner."
Ian O'Reilly, Director of Sales and Operations at Chill Insurance, said: "In Mayo, a single buyer earning the local median income would still not earn enough to borrow what they need for a typical first home.
"For many first-time buyers, closing that gap means saving a larger deposit, buying with another person or looking at State supports such as the First Home Scheme or the Local Authority Home Loan."
Key national findings:
No county is affordable for a single buyer on the national median salary of €44,816
Three counties now need a six-figure salary: Dublin, Kildare and Wicklow
Five counties need salaries above €90,000
For the full county-by-county figures, methodology and information on the options available to first-time buyers, see the report here.