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.
Funding sought for Glebe Craft Quarter
Plans to redevelop Killarney’s town centre laneways remain on hold as local authority officials seek capital funding to progress the scheme.
At Wednesday’s meeting of the Killarney Municipal District, Councillor Niall Kelleher raised the future of the urban regeneration project, asking the council: “That Kerry County Council provide a detailed update on the proposed development of the Glebe Craft Quarter in Killarney, including the Glebe, Bohereencael, Milk Market Lane and Old Market Lane areas, outlining the work completed to date, estimated project cost, funding secured or being sought and the anticipated timeframe for implementation.”
In a written reply, Kerry County Council revealed that no dedicated capital has yet been assigned to deliver this phase of the public realm plan.
An official response stated: “At present, there is no identified funding stream for this phase of the proposed public realm works. The project will be considered as part of future funding applications, and Kerry County Council will continue to explore all available funding opportunities to support its delivery.”
Call for urgent child protection funding at Killarney conference
Frontline child protection and welfare services are facing an unprecedented crisis due to a surge in cases and limited resources, key speakers warned at a national conference in Killarney on Wednesday.
The final event of National End Child Poverty Week took place at the KCYS Youth Centre in Killarney, bringing together child welfare experts, legal professionals, and social workers to examine child protection, welfare, and alternative care.
Addressing delegates ahead of Budget 2027, Tanya Ward, Chief Executive of the Children’s Rights Alliance, warned against proposed spending cuts across government departments that deliver core family supports.
“For politicians to speak about their prioritisation of the protection and safety of children in recent weeks, while at the same time committing to levying the Departments that deliver those protection, welfare and family support services is just not right,” Tanya Ward said. “The levies, which are intended to shoulder an ‘overspend’ by the department of education through cuts across other departments, could not come at a worse time. They essentially ask critical services to children to pare back, to do more with less – at a time when these services are completely stretched thin trying to meet the demand for support.”
Figures released at the conference revealed that referrals to Tusla, the Child and Family Agency, have doubled over the past decade. The agency received a record 106,444 referrals in 2025. That upward trend has continued into 2026, with 28,800 referrals logged in the first three months of the year—an 11 per cent increase compared to the same period in 2025.
“Tusla and its support services are the last safety net for vulnerable children and families,” Tanya Ward added. “We need to be seeing significant increased investment to ensure we have a child protection system that is fit for purpose and can meet the needs of the children behind these figures who are facing battles such as neglect, emotional, physical or sexual abuse, trauma and deprivation.”
Chaired by Julie Ahern, Director of Legal, Policy and Services at the Children’s Rights Alliance, the conference featured keynote contributions from Kate Duggan, Chief Executive Officer of Tusla, and Dr Aisling Parkes, Special Rapporteur on Child Protection and Senior Lecturer in Law at UCC.
Additional speakers included Denise Kirwan, Partner at Comyn Kelleher Tobin Solicitors; social worker Thomas O’Driscoll; Seamus Whitty, CEO of KCYS; and Sinéad Roe, Intensive Family Support Co-ordinator at KCYS.
The Children’s Rights Alliance is calling on the Government to deliver a dedicated “Children’s Budget” for 2027. Key demands include increasing Tusla’s overall funding to expand social work staff across 30 new network areas, funding the rollout of the forthcoming National Policy Framework on Alternative Care, and increasing the proportion of Tusla’s budget directed to early intervention and community family support by three percentage points annually over five years.
Funding sought for Glebe Craft Quarter
Funding sought for Glebe Craft Quarter Plans to redevelop Killarney’s town centre laneways remain on hold as local authority officials...
Call for urgent child protection funding at Killarney conference
Call for urgent child protection funding at Killarney conference Frontline child protection and welfare services are facing an unprecedented crisis...
Killarney Camera Club has published a special commemorative booklet featuring 25 images to celebrate its 25th anniversary.
Camera Club marks silver anniversary with publication Killarney Camera Club has published a special commemorative booklet featuring 25 images to...
Teresa McGrane to receive 2026 Maureen O’Hara Award
Teresa McGrane to receive 2026 Maureen O’Hara Award Former Deputy CEO of Screen Ireland Teresa McGrane has been named as...
Felicity’s Summer in Killarney Week 13
Felicity’s Summer in KillarneyWeek 13 A few weeks later and the end of summer was quickly approaching. Auntie Sheila and...
