News
Property prices – who’s to blame?
By Michael O’Connor
There are multiple theories as to why house prices continue to reach unfathomable heights.
One that gets a lot of airtime is the role of private equity firms in the market. The generally accepted narrative is that these funds come in, buy up all the available property supply and leave nothing for the rest of us. In reality, this effect is somewhat exaggerated.
It's always a crowd-pleaser when you blame surging housing prices on the big bad investment banks. After all, who doesn’t love to rally behind a ‘Vultures Out’ campaign. As much as I would love to burden them with most of the blame, the stats simply don’t back it up.
The share of total home sales that come from investor purchases has actually been in decline. In 2020, estimates showed that investors make up about 20 percent of housing sales.
Bear in mind that number is not just the share of institutional investors but anyone who isn’t just buying a house as their primary residence.
This 20% includes people purchasing second homes, vacation rentals, individual investment properties, and small investors flipping homes for profit.
In the US since 2011, the cumulative acquisitions from institutional investors has approached 400,000 single-family homes. This may seem like a lot, but with 83 million homes in the US, this represents less than half a percent of the market.
If we narrow our focus solely to the 16 million homes on the rental market, institutionally backed firms only own 2.5% of the market.
In reality, large investors make up just one to two percent of all single-family purchases, while other investors make up 18 to 19 percent.
The numbers show that most rentals are owned by small investors; your neighbours and friends.
To be clear, I agree that levies should be in place to prohibit bulk buying of properties, but simply using private equity firms as the scapegoat ignores the crux of the problem.
As masters of the dark arts of deflection, politicians are quick to point the finger. In reality, money supply, over-regulation, a distinct lack of planning, inadequate funding, and extended periods of undersupply post the Global Financial Crisis are the driving forces behind the current housing crisis but I guess it’s easier to fix the blame than fix the problem.
Where do prices go from here?
I expect home prices to grow more moderately in the coming years as more supply reaches the market, but this will take time. Those waiting for a considerable pullback could be left wanting.
Don’t expect housing to become affordable any time soon.
"If I had to guess, it’s going to be years until we see anything approaching a “normal” housing market. We simply didn’t build enough homes following the last housing crash to meet the demand coming from millennials reaching their household formation years" - Ben Carlson 'A Wealth of Common Sense'
Looking ahead, rising rates could slow things a bit if mortgage rates get high enough. With that said, the central banks are relatively boxed in. Interest rates are unlikely to skyrocket given the effect this would have on the service level of Government debt, but that’s for another day.
Remember, just because you think house prices should fall, doesn’t mean they will. The distinction is vital.
The waiting game hasn’t always paid off.
Former Killarney Cycling Club rider Stefan Caulfield-Dreier has secured a professional contract with leading Dutch-based outfit Azerion-Villa Valkenburg.
The 23-year-old Beaufort native began his cycling career with Killarney Cycling Club in the under-12 age category. He demonstrated strong potential during his youth career, culminating in a victory at the Under-16 National Time-Trial Championship in 2019.
After progressing through the junior ranks, Caulfield-Dreier began racing on the Continent with a Dutch squad upon entering senior competition. He claimed Senior National Track titles in both the Points and Madison events in 2023 and 2024, and went on to represent Ireland at international track events in the Netherlands and Switzerland across 2024 and 2025.
Announcing the signing, team management at Azerion-Villa Valkenburg highlighted Caulfield-Dreier as a specialist in classics and time trials who excels in demanding race conditions.
Killarney Cycling Club Chairman Kevin Murphy welcomed the announcement, praising the former member’s dedication.
“Stefan has shown enormous persistence and resilience, and we are delighted that he has been recognized and rewarded with this big step-up in his career,” Murphy said.
Caulfield-Dreier’s father, Heiko, runs Killorglin-based firm Aqua Design and has been a long-standing supporter of Killarney Cycling Club.
Stefan Caulfield-Dreier signs professional cycling contract
Former Killarney Cycling Club rider Stefan Caulfield-Dreier has secured a professional contract with leading Dutch-based outfit Azerion-Villa Valkenburg.
The 23-year-old Beaufort native began his cycling career with Killarney Cycling Club in the under-12 age category. He demonstrated strong potential during his youth career, culminating in a victory at the Under-16 National Time-Trial Championship in 2019.
After progressing through the junior ranks, Caulfield-Dreier began racing on the Continent with a Dutch squad upon entering senior competition. He claimed Senior National Track titles in both the Points and Madison events in 2023 and 2024, and went on to represent Ireland at international track events in the Netherlands and Switzerland across 2024 and 2025.
Announcing the signing, team management at Azerion-Villa Valkenburg highlighted Caulfield-Dreier as a specialist in classics and time trials who excels in demanding race conditions.
Killarney Cycling Club Chairman Kevin Murphy welcomed the announcement, praising the former member’s dedication.
“Stefan has shown enormous persistence and resilience, and we are delighted that he has been recognized and rewarded with this big step-up in his career,” Murphy said.
Caulfield-Dreier’s father, Heiko, runs Killorglin-based firm Aqua Design and has been a long-standing supporter of Killarney Cycling Club.
Former Killarney Cycling Club rider Stefan Caulfield-Dreier has secured a professional contract with leading Dutch-based outfit Azerion-Villa Valkenburg.
The 23-year-old Beaufort native began his cycling career with Killarney Cycling Club in the under-12 age category. He demonstrated strong potential during his youth career, culminating in a victory at the Under-16 National Time-Trial Championship in 2019.
After progressing through the junior ranks, Caulfield-Dreier began racing on the Continent with a Dutch squad upon entering senior competition. He claimed Senior National Track titles in both the Points and Madison events in 2023 and 2024, and went on to represent Ireland at international track events in the Netherlands and Switzerland across 2024 and 2025.
Announcing the signing, team management at Azerion-Villa Valkenburg highlighted Caulfield-Dreier as a specialist in classics and time trials who excels in demanding race conditions.
Killarney Cycling Club Chairman Kevin Murphy welcomed the announcement, praising the former member’s dedication.
“Stefan has shown enormous persistence and resilience, and we are delighted that he has been recognized and rewarded with this big step-up in his career,” Murphy said.
Caulfield-Dreier’s father, Heiko, runs Killorglin-based firm Aqua Design and has been a long-standing supporter of Killarney Cycling Club.
Church seeks creative Christmas trees for festival
The Methodist Church in Killarney is inviting local schools, community groups, businesses, and individuals to create and submit decorated Christmas trees for an upcoming festive event on Countess Road.
The Christmas Tree Festival will take place at the church from December 4 to December 6.
Organiser Revd Alison Gallagher explained that the initiative aims to build on the success of the church’s Summer Fête, which raised several thousand euro for church funds and designated charity ADAPT Kerry.
Revd Gallagher previously directed a similar festival in Inishowen, County Donegal, which featured more than 50 unique tree entries from local schools, daycare centres, supermarkets, jewellers, and local services.
Revd Gallagher said: “In August, we had a very successful Summer Fête, and hundreds of people attended. That event raised several thousand euro for the church and our designated charity, ADAPT Kerry. We are now hoping to build on that success with this forthcoming festival, which will hopefully showcase the creativity and talent that exists in the town and surrounding area.”
Anyone interested in submitting a tree for the display can contact Revd Gallagher on 087 263 2906 or by email at alison.gallagher@irishmethodist.org.
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