Inflation has surprised on the downside relative to forecasts from economic models (figure 1). And it has persisted in recent years despite falling unemployment rates here and in most of the advanced economies. This global pattern is depicted in figure 2. 1 / 12  BIS central bankers' speeches  Source: OECD, RBNZ calculations.
We are seeing more young people living at home, and more adults in group housing.8 The average household size, of 2.7 people per home, is the second largest in the EU.9 And while demographics and family size also play a role in this, if household size moved in line with the European average of 2.3 people per home – then there is unmet demand for over 260,000 homes in Ireland.10 260,000 homes is over four times the number that have been built in the past five years.11 In Dublin, especially, supply has not kept up with demand.