I know rental rates and housing prices don’t necessarily run in parallel, but I just thought I’d mention that figure by way of introduction. I actually wanted to write about Dublin housing prices, which have soared since the Celtic Tiger phenomenon of the mid-nineties. Consider the facts that I read in today’s Irish Times:
- In 1991, the average price of a ‘second-hand house’ (meaning not newly-built) was 76,075 euros (or CAN $115,935).
- In March, 2007, the average price of a second-hand house was 429,151 euros (or CAN $654,005).
Prices have increased over five-fold in a 16-year period! That’s just nuts. No wonder there’s extensive speculation about an Irish real estate bubble.
To compare with Vancouver:
- According to Stats Canada (via a PDF whose location I failed to note), in 1991, the average Vancouver home cost about CAN $200,000.
- In November, 2006, the average Vancouver home cost CAN $519,294.
Why that’s a measly increase of two and a half times.
I suppose to do a real analysis you’d have to compare GDP or average net income and these sorts of factors, but Lord knows I’m no economist. Apparently the US is undergoing a significant, uh, correction. Will Ireland and Canada follow?