Today, only three to four per cent of mortgaged households are in negative equity.6 Thousands of households, therefore, have more options now than they did five years ago. These substantial highs and lows in house prices create differential effects across generations. Younger households face affordability issues.
Households at or close to retirement benefit from higher house prices as the family home represents the majority of savings for most Irish households, strong price growth leads to an increase in the value of those savings. The effects of the house price boom and bust reverberate through the housing market long after the event.