Ireland’s housing market continued to cool in the second quarter of 2026, with price inflation easing across most regions and early transaction data confirming a slowdown in market heat. While supply conditions have improved modestly, the report highlights a growing reliance on new‑build activity and persistent tightness in second‑hand stock—creating a two‑speed market between urban centres and rural regions.
National Market Overview
List prices rose 3.8% year‑on‑year, down from 6.8% the previous year, marking a clear deceleration in inflation (). Quarter‑on‑quarter, prices increased 1.6%. Transaction prices show a similar trend: early figures indicate a 0.6% rise between March and June, bringing annual inflation to 3.2%, the slowest pace since 2023.
The average list price for a three‑bed semi‑detached home now stands at €445,000, with national prices 44% above pre‑Covid levels and 8% below Celtic Tiger peaks.
Supply: Slight Improvement but Still Tight
Second‑hand stock remains historically low. As of June 1st, 13,118 homes were listed for sale—up 6% year‑on‑year but still 50% below the 2015–2019 average (). Regional availability varies sharply:
- Dublin: Stock is now close to pre‑Covid norms.
- Munster (ex‑cities): Supply is 66% below pre‑Covid levels.
- Connacht‑Ulster (ex‑Galway): Stock is 64% below historic averages.
Nationally, 53,000 second‑hand homes were listed in the year to May—just 1% higher than last year and 10% below pre‑Covid norms.
A Two‑Speed Market Emerges
The report identifies a widening divide between urban and rural markets:
Urban Centres (Dublin + Cork, Limerick, Galway, Waterford)
Urban markets are leading the slowdown:
- Dublin list‑price inflation has halved to 3.0%.
- Other cities recorded a slight annual decline of 0.2%.
- Dublin transaction prices fell 2.3% year‑on‑year—the first annual drop since 2023 ().
This cooling reflects recovering supply and easing buyer competition after years of interest‑rate pressure.
Rural Regions (Leinster ex‑Dublin, Munster ex‑cities, Connacht‑Ulster ex‑Galway)
Outside the cities, inflation remains strong:
- Munster (ex‑cities): 6.3% annual inflation
- Connacht‑Ulster (ex‑Galway): 8.8% annual inflation
- Leinster (ex‑Dublin): 4.8% annual inflation
These markets continue to run hot due to acute supply shortages and insufficient new‑build activity to relieve pressure.
New‑Builds vs Second‑Hand: A Growing Imbalance
The volume story adds crucial nuance. In the year to March 2026, 58,485 transactions took place—up 3.2% annually (). But the growth is entirely driven by new homes:
- New‑build sales: Up 17%, reaching almost 14,000
- Second‑hand sales: Down 0.5%, remaining below 2022 peaks
New‑builds have more than doubled since the mid‑2010s and now account for a rising share of total activity, especially in Munster and Connacht‑Ulster. However, the report stresses that new construction alone cannot restore balance—churn in the existing owner‑occupied stock is essential.
Regional Highlights
Dublin
- Average list price (3‑bed semi‑d): €580,000
- Stock: 3,932 homes, up 9% year‑on‑year
- Transaction prices: 2.3% annual decline
- Activity: Flat overall, with new‑build sales up 3.7%
Four Major Cities (Cork, Limerick, Galway, Waterford)
- Annual list‑price change: –0.2%
- Average list price (3‑bed semi‑d): €416,000
- Stock: 1,087 homes, up 15%
- Transaction inflation: 4.4%
Leinster (ex‑Dublin)
- Annual list‑price inflation: 4.8%
- Average list price (3‑bed semi‑d): €373,000
- Stock: 3,243 homes, up 13%
- Transaction inflation: 7.7%
Munster (ex‑cities)
- Annual list‑price inflation: 6.3%
- Average list price (3‑bed semi‑d): €328,000
- Stock: 2,472 homes, down 1%
- Transaction inflation: 7.9% (fastest in Ireland)
Connacht‑Ulster (ex‑Galway)
- Annual list‑price inflation: 8.8%
- Average list price (3‑bed semi‑d): €262,000
- Stock: 2,384 homes, down 2%
- Transaction inflation: 6.1%
Market Sentiment
Consumer sentiment remains weak. Only 6% of market participants believe current prices represent good value—continuing a trend seen since 2021 ().
Overall Takeaway
The Q2 2026 Daft.ie report paints a picture of a market easing from the intense inflation of recent years, but not uniformly. Urban centres are cooling, driven by recovering supply and softer demand, while rural regions remain overheated due to chronic stock shortages. New‑builds are increasingly carrying the market, yet second‑hand activity remains subdued—highlighting a structural imbalance that must be addressed for long‑term stability.