Brendan Burgess
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Home prices 'as high as they can go' so cost of building must be driven down, warns ESRI
House prices are as high as they can go and the cost of building homes must be driven down to help ease the housing crisis, a top economic think tank has warned.
www.independent.ie
"Price levels are as high, really, as they can possibly go, given affordability in the domestic economy," research professor Kieran McQuinn told reporters at the launch of today's ESRI economic review.
"The focus has to be on reducing the cost of supply of property in the Irish market, rather than trying to increase supply through continually increasing prices," he said.
....
While the ESRI noted that average wages have risen 3.5pc this year - reaching €780 a week, or €40,560 a year - this is nowhere near the level needed to secure a mortgage for many properties, particularly in cities and their suburbs.
And Purple gets a nod as well...
Building firms should adopt new technologies and modernise design, planning and on-site practices, he said.