A single first-time buyer in Waterford would need to earn almost €78,000 a year to afford a typical first home, according to new research.

Analysis carried out for Chill Insurance estimates that a salary of €77,853 would be required to qualify for the mortgage needed to purchase a typical first-time buyer property in Waterford.

That’s more than €35,000 above Waterford’s median income of €42,460.

The research puts the typical first-time buyer home in Waterford at €346,013.

Affordability Gap

The analysis used CSO data on first-time buyer property prices and local earnings and assessed affordability against Central Bank mortgage lending rules.

Under those rules, first-time buyers can generally borrow up to four times their gross income and up to 90% of a property’s value.

The research found that a single person earning Waterford’s median income would therefore fall €35,393 short of the salary estimated to be needed for a typical first-time buyer property.

Economist Austin Hughes said rising house prices are making home ownership increasingly difficult for prospective buyers across the country.

He said the issue is no longer confined to Dublin or other major urban centres, with the research finding that the typical first-time buyer property is currently beyond the reach of a single median-income earner in every county without additional financial support.

Nationwide Challenge

Nationally, the research found no county where a typical first-time buyer home was affordable for a single person earning the national median salary of €44,816.

Dublin, Kildare and Wicklow were found to require salaries above €100,000, while five counties require annual earnings of more than €90,000.

Chill Insurance’s Ian O’Reilly said prospective buyers facing an affordability gap may have to consider a larger deposit, purchasing with another person or accessing State-backed supports.